PLI scheme incentive disbursement likely at Rs 13,000 crore in FY24

Incentive disbursements to beneficiaries under the production-linked incentive (PLI) scheme are projected to reach Rs 13,000 crore by the end of the current financial year. This marks a significant increase from the Rs 2,900 crore disbursed last year.

Rajesh Kumar Singh, the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), informed reporters that the disbursements this year would be substantially larger.

During the financial year 2021-22, the government rolled out 14 PLI schemes, encompassing sectors such as automobiles, drones, specialty steel, textiles, food truck processing, new and renewable energy, and pharmaceuticals. Valued at Rs 1.97 lakh crore over five years, the scheme was introduced to make domestic manufacturing globally competitive, create employment opportunities, and boost exports.

Separately, Singh noted that the Centre is working to modify the scheme for sectors that have not performed as expected. PLI schemes that have not been thriving include areas like high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel. Conversely, the scheme has been successful in sectors including electronics, pharmaceuticals, medical devices, telecom, food processing, and white goods.

“There are some course-corrections or tweaking that are required. Some are minor, some are major, and that will require higher-level approvals,” Singh stated. He added that savings from the scheme are already being considered for allocation to other PLI schemes or for restructured PLI initiatives.

Quality Control Orders

The government has plans to issue 60 quality control orders (QCOs) this year for products including rubber, paper, and light engineering items. The aim is to restrict imports of sub-standard goods and enhance domestic manufacturing.

Singh shared that they are issuing these orders "fairly extensively," and so far, 33 QCOs for over 127 products such as air conditioners, refrigerators, pipes, and safety valves have been issued.

“Right now, we are processing 60 new QCOs in association with the Bureau of Indian Standards (BIS). These are crucial not only for the safety of consumers but also to improve quality standards,” he told reporters.

This update, with inputs from PTI, outlines the government's ongoing efforts to support domestic industry, both through the PLI schemes and quality controls. The adaptation and adjustment of these strategies illustrate a responsive approach to the unique needs and performance of various sectors within the Indian economy.

With inputs from PTI