Cabinet secretary Rajiv Gauba will hold a review of the production-linked incentive scheme today to take stock of the progress made and discuss the way forward to make it more effective, a senior government official said on Wednesday.
The review meeting will be chaired by Gauba and will see participation of officials from 10 government departments that are implementing the scheme, apart from representatives of the Union ministry of finance. The department for promotion of industry and internal trade (DPIIT) is playing the role of the coordinator.
The Cabinet note with proposals for extending the scheme to parts of new-age bicycles, leather, footwear, and toys have already been circulated. Union finance minister Nirmala Sitaraman said last week that the government will consider including chemical and petrochemical sectors in the scheme.
Of the 14 sectors covered by PLI, activity has been visible especially in eight sectors — large scale electronics, telecom, pharmaceuticals, food processing, white goods, and auto and auto components.
Pick-up of PLI in sectors like high efficiency solar PV modules, advance chemistry cell (ACC) battery, textile products, and specialty steel is yet to be seen.
Despite a large outlay of Rs 1.97 trillion for the scheme, the off-take of benefits has been slow. Since its launch in March 2020, only Rs 2,900 crore of incentives have been disbursed against the incremental production of Rs 6.75 trillion. Under the scheme, Rs 62,500 worth of investments have been realised.
So far 733 applications have been approved under the PLI scheme.
The purpose of the PLI scheme is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.
According to the government, these schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so.