The government is making adjustments to certain production-linked incentive (PLI) schemes that have not garnered sufficient interest. Nevertheless, there is a strong belief in the government that the incentives will yield substantial investments during this fiscal year.
All About PLI Scheme
Starting from the current year, disbursement figures are anticipated to be significantly larger, reaching a minimum of ₹13,000 crores. The point at which these funds will be fully utilized is uncertain. Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), has indicated that the anticipated cost savings resulting from these endeavors are currently under deliberation for allocation towards alternative PLI endeavors or for the revitalization of ongoing PLI schemes.
Singh also disclosed that PLI initiatives focused on sectors such as medical devices, pharmaceuticals, food processing, telecommunications, drones, and white goods are displaying positive performance. However, he acknowledged that certain PLIs are being adjusted due to under-subscription, although he refrained from specifying the particular sectors facing challenges.
The government initially allocated ₹1.97 lakh crores for PLIs across 14 sectors. Out of these, 733 applications have been approved, resulting in an actual investment of ₹78,000 crores. Notably, these schemes have generated sales exceeding ₹6 lakh crores, provided employment for around 4 lakh individuals, and propelled exports by ₹2.65 lakh crores until FY23.
Approximately ₹2,900 crores have been disbursed so far. Singh emphasized that the government’s current focus lies on attracting investments and commencing production, with disbursements being a secondary concern.
Simultaneously, the DPIIT is preparing to notify around 60 quality control orders (QCOs) this year. Among these, four are expected to be announced in the upcoming days, covering areas such as cookware and utensils, fire extinguishers, domestic gas stoves using PNG, and electric ceiling-type fans.
Recently, seven QCOs were issued, addressing matters like smart meters, welding rods and electrodes, fasteners, laminates, water bottles, and insulated containers. Collectively, the ongoing development of the 60 QCOs is centered around sectors including light engineering, consumer industries, paper, aluminium, and rubber.
India has historically utilized QCOs to a lesser extent compared to other nations, and the introduction of these orders is aimed at enhancing product quality. The DPIIT Secretary emphasized that tariff policy, QCOs, and PLIs together will contribute to expanding the manufacturing landscape and ensuring the production of high-quality goods.