PLI-eligible companies likely to invest Rs 50,000 cr in capex this fiscal

The average manufacturing capex for the last five years (FY16 to FY21) has also been pegged at Rs 4 trillion annually, says ICRA

Companies eligible for the production-linked incentive (PLI) scheme—including semi-conductor manufacturers—are expected to invest around Rs 50,000 crore in capex this financial year (FY23), according to estimates from the rating and research agency ICRA.

The figure is based on the production commitments the companies have made, and spans sectors that range from advanced chemistry batteries and automobiles to solar panels. These investments will help to give a big push to incremental capex in manufacturing across sectors in the country.

ICRA’s preliminary estimates mean that in FY23, a large number of the 403 (this number will go up) PLI-eligible companies will invest