The government has over ₹40,000 crore surplus from the Production Linked Incentive scheme outlay of ₹1.97 lakh crore announced for the 14 beneficiary sectors that it may use for expanding the scheme to additional sectors depending strictly on the ‘’efficacy and usefulness’’ of such an expansion, officials said.
“While the interim budget made a token allocation of ₹1 lakh for PLI scheme for toys and leather, as both have not been cleared by the Union Cabinet, other items too could be considered for the scheme, but only after there is more clarity on how the scheme was panning out for all 14 existing sectors,” an official tracking the matter told Businessline.
The PLI scheme announced in 2021 covers 14 sectors which include mobile manufacturing, drug intermediaries & API, medical devices, auto & components, pharmaceuticals drugs, specialty steel, telecom & networking products, electronic/technology products, white goods, food products, textile products, high efficiency solar PV modules, ACC battery, and drones and components.
Till now, only ₹4,415 crore have been disbursed under the schemes for eight sectors, including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharma, telecom, food processing, and drones.
Entire corpus not used
“It is clear by now that the entire ₹1.97 lakh crore corpus announced for the PLI scheme will not get used up and there will be a surplus of about ₹40,000-45,000 crore. Right now the focus is on ensuring that the scheme is well implemented for the existing sectors. But the scheme may also be expanded utilising the surplus funds to include more sectors going strictly by the efficacy and usefulness of doing so,” the official said.
While the interim budget documents indicate that the toys and leather & footwear sector may be topping the list of items to be included in the PLI scheme, other Departments and Ministries have put forward their proposals as well for items such as chemicals & petrochemicals, furniture, home appliances and speciality bicycles.
“The interim budget specified that allocations would be made for the toy and leather sectors only after the Cabinet approves it. Other items are also under consideration. The Cabinet will decide,” the official added. The Hindu BusinessLine