PLI scheme for Pharma, drones and textiles to be modified by govt

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New Delhi: The government is planning to make adjustments to the production-linked incentive PLI scheme for pharmaceuticals, drones, and textile sectors. According to an official statement, these modifications are intended to stimulate investment and bolster manufacturing. An official source has stated that these sectors were chosen on the basis of their performance under the existing scheme for various products.

Higher disbursement scheme for PLI scheme

The official said, “Disbursement of production-linked incentives (PLI) for white goods (AC and LED lights) would start this month and that would push the amount of disbursement, which was only Rs 2,900 crore till March 2023.”

After the identification of sectors, a combined note for approval from the Union Cabinet will be sent. The change in disbursement includes an extension of time for Pharma sectors, and addition of products in some sectors. Within the textile industry, there is a proposal to expand the scope of particular products within the technical textiles category, while in the drone sector, there is a plan to raise the incentive amount.

For drones and drone components, the PLI scheme has allocated a total of Rs 120 crore, spread over three financial years.

A senior official from the Ministry of Commerce and Industry highlighted that sectors like high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel have faced challenges under the PLI schemes.

The government is addressing concerns raised by stakeholders regarding timely claim processing, visa-related matters for Chinese professionals, and delays in environmental clearances.

Objective of the PLI scheme

The scheme aims to attract investments, enhance technological capabilities, achieve economies of scale, improve manufacturing efficiency, and enhance global competitiveness for Indian companies.

The PLI scheme, with a budget of Rs 1.97 lakh crore, was introduced in 2021 for 14 sectors including telecommunications, white goods, textiles, automobiles, medical devices, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, pharmaceuticals and drones.

All 14 sector-specific schemes have received approval from the respective ministries and departments and are currently at various stages of implementation. Approximately Rs 13,000 crore is expected to be disbursed to eligible firms benefiting from these schemes.