NEW DELHI: Despite strong doubts over the efficacy of the Production Linked Incentives (PLI) scheme, the government expanded the scheme to newer sectors in order to give a boost to manufacturing in the country.
In June 2022, the government launched a Design-led PLI to build a strong ecosystem for 5G as part of the scheme for telecom & networking products. In September 2022, the government launched the PLI scheme (Tranche II) on ‘National programme on High-Efficiency Solar PV Modules’, with an outlay of Rs 19,500 crore. The purpose was to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and reduce import dependence in the area of renewable energy. Under the mobile manufacturing & specified electronic components head, the government disbursed Rs 53.28 crore to the eligible companies.
Nearly 650 applications have been approved under the PLI scheme till December 16, 2022, in sectors such as bulk drugs, medical devices, telecom, white goods and food processing under 13 schemes. So far, `. 47,000 crore of actual investment has been made and production or sales of Rs 3.75 lakh crore of eligible products and employment generation of nearly 2.5 lakhs has been reported.
“Around 106% achievement of actual investment reported versus the corresponding projections of FY 2021-22,” said the government in a press note. In a bid to enhance India’s manufacturing capabilities and exports, the government, in 2020, announced PLI schemes for 14 key sectors with an outlay of Rs 1.97 lakh crore. The government approved 30 firms for availing sales-based incentives under the scheme for millet-based products from large entities and MSMEs. For white goods (ACs and LED lights), so far 64 applicants with committed investment of Rs 6,766 crore have been selected.