Empowered committee in PLI scheme approves Rs 1,000 crore disbursement to beneficiaries of electronics sector
Empowered committee in PLI scheme approves Rs 1,000 crore disbursement to beneficiaries of electronics sector
The Empowered Committee overseeing the implementation of the Production-Linked Incentive (PLI) scheme has recently sanctioned a disbursement of Rs 1,000 crore to beneficiary firms operating within the electronics sector, as confirmed by a senior government official.
Up until March 2023, the government had already disbursed a total of Rs 2,900 crore, which was part of the claims amounting to Rs 3,400 crore received under the scheme. The primary objective of the PLI scheme is to bolster domestic manufacturing capabilities, generate employment opportunities, and provide crucial support for the export-oriented activities within the electronics sector.
The official highlighted that in the most recent meeting of the committee, the approval for disbursement of Rs 1,000 crore was granted under the PLI scheme for the electronics sector. While the approval has been granted, the actual disbursement of funds to the beneficiary companies is expected to be completed over the course of the next few days.
These disbursements under the PLI scheme signify the government’s commitment to fostering a conducive environment for the growth of the electronics sector, promoting indigenous manufacturing capabilities, and reinforcing India’s position as a key player in the global electronics market.
The recent approval for the disbursement of Rs 1,000 crore under the Production-Linked Incentive (PLI) scheme for the electronics sector marks the first disbursement for the current fiscal year. Launched in 2021, the PLI scheme encompasses 14 sectors, with the primary objective of boosting domestic manufacturing, enhancing the competitive edge of Indian industries, and promoting the ‘Make in India’ initiative.
The 14 sectors covered under the PLI scheme include:
1. Large-scale electronic manufacturing
2. White goods
3. Textiles
4. Medical devices manufacturing
5. Automobiles
6. Specialty steel
7. Food products
8. High-efficiency solar PV modules
9. Advanced chemistry cell battery
10. Drones
11. Pharmaceuticals
The total outlay for the PLI scheme was announced to be Rs 1.97 lakh crore, reflecting the government’s robust commitment to incentivize and promote key sectors critical to India’s economic growth and self-reliance. By offering financial incentives and support, the PLI scheme aims to encourage the development of a competitive, self-reliant, and resilient industrial ecosystem, fostering sustainable economic development and job creation in the country.
It is encouraging to observe the positive impact of the Production-Linked Incentive (PLI) scheme in various sectors, particularly in electronics, pharmaceuticals, and medical devices. These sectors play a crucial role in fostering technological innovation, enhancing healthcare infrastructure, and promoting sustainable economic growth.
Under the PLI scheme for large-scale electronics manufacturing, including mobile phones and specified electronic components, a total of 32 beneficiaries have been approved, reflecting the scheme’s success in driving investments and facilitating the growth of the electronics industry in India.
The disbursement of incentives under the PLI scheme is a collaborative effort, with proposals being presented by the respective ministries and departments responsible for the implementation of the scheme. This collaborative approach ensures effective coordination and efficient utilization of resources, fostering a conducive environment for the development and expansion of various sectors covered under the PLI scheme.
As the PLI scheme continues to yield positive outcomes, it is crucial for the government and relevant stakeholders to sustain the momentum and explore further avenues to strengthen the manufacturing capabilities, promote innovation, and enhance the global competitiveness of Indian industries across multiple sectors.
The Empowered Committee responsible for overseeing the implementation of the Production-Linked Incentive (PLI) scheme comprises various key stakeholders, including representatives from prominent government bodies such as NITI Aayog, the Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Electronics and Information Technology, the Department of Expenditure, the Department of Revenue, the Department of Economic Affairs, and the Office of the Directorate General of Foreign Trade (DGFT). The collective expertise and oversight of these entities ensure a comprehensive and integrated approach to the effective execution of the PLI scheme.
The Empowered Committee plays a pivotal role in providing recommendations for the disbursement of incentives to selected beneficiaries under the PLI scheme. By leveraging their collective insights and expertise, the committee aims to facilitate the equitable distribution of incentives and ensure that the scheme’s objectives, including fostering domestic manufacturing, boosting exports, and creating employment opportunities, are effectively met.
In cases where the disbursement of incentives under the PLI scheme is below expectations or where participating firms face challenges in meeting their performance thresholds, the respective departments are actively exploring corrective measures and policy interventions. Such course corrections are essential to ensure the optimal and equitable distribution of incentives, promote accountability, and foster a conducive environment for the growth and development of key sectors under the PLI scheme.
The recent high-level review meetings conducted to assess the progress of the Production-Linked Incentive (PLI) scheme highlight the government’s proactive approach in monitoring and evaluating the effectiveness of the scheme’s implementation. These reviews serve as crucial platforms for identifying potential challenges, exploring strategies for improvement, and ensuring that the PLI scheme aligns with its intended objectives of promoting domestic manufacturing, enhancing competitiveness, and fostering economic growth.
Despite the challenges in certain sectors, officials remain optimistic about the potential for increased disbursements in the near future. This positive outlook reflects the government’s commitment to addressing the underlying issues and implementing necessary interventions to stimulate growth and participation across all sectors covered under the PLI scheme.
Several sectors have demonstrated robust performance under the PLI scheme, including large-scale electronics manufacturing, pharmaceuticals, food processing, and white goods. The commendable progress in these sectors signifies the positive impact of the PLI scheme in fostering innovation, improving productivity, and enhancing the competitiveness of the respective industries.
On the other hand, sectors such as high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel have faced challenges in achieving desired growth rates under the PLI scheme. The identification of these sectors allows policymakers and stakeholders to focus on implementing targeted interventions, fostering a supportive ecosystem, and addressing sector-specific constraints to facilitate their effective participation and growth within the PLI framework.
