Government approves Rs 1,000 cr disbursement to beneficiaries under PLI scheme

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New Delhi: The Empowered Committee in the Production-Linked Incentive PLI scheme has sanctioned the disbursement of Rs 1,000 crore to electronics sector beneficiary firms, as confirmed by a senior government official. Up until March 2023, the government has already disbursed Rs 2,900 crore from claims totalling Rs 3,400 crore, aligning with the scheme’s objectives of enhancing domestic manufacturing, job creation, and supporting exports.

“In the recent meeting of the committee, Rs 1,000 crore disbursements were approved under the PLI scheme for the electronics sector. Actual disbursement to the beneficiary companies would take a few more days,” the official said. This disbursement marks the first of this fiscal year.

The PLI scheme, enveloping 14 sectors such as large-scale electronic manufacturing, white goods, textiles, medical devices, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals, was initially introduced in 2021 with a budget allocation of Rs 1.97 lakh crore.

Sectors that have shown commendable progress under the PLI scheme are electronics, pharmaceuticals, and medical devices. A total of 32 beneficiaries were approved for the PLI scheme, including the manufacturing of mobile phones and specified electronic components.

Proposals for incentive disbursement are submitted by the respective ministries and departments responsible for implementing the scheme and are evaluated by the Empowered Committee, comprising members from NITI Aayog, the Department for Promotion of Industry and Internal Trade, the Ministry of Electronics and Information Technology, and representatives from the Department of Expenditure, Department of Revenue, Department of Economic Affairs, and the Directorate General of Foreign Trade.

The committee provides recommendations for disbursing incentives to selected beneficiaries under the PLI scheme. For sectors with limited disbursement or where companies struggle to meet performance benchmarks, the respective departments are considering adjustments to the scheme.

High-level reviews have been conducted recently to monitor the scheme’s progress. Another official expressed hope that disbursements would increase in the near future.

Sectors exhibiting strong PLI performance include large-scale electronics manufacturing, pharmaceuticals, food processing, and white goods, while sectors with sluggish progress comprise high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel.