Govt set to modify PLI scheme for pharma, textiles, and drones

New Delhi: In order to encourage investment and boost manufacturing, the government may soon tweak the production-linked incentive scheme for pharmaceuticals, drones and textile sectors. These sectors have been identified based on their performance of the scheme for various products, said an official.

Disbursement for PLI scheme to be higher: Official

The official said, “Disbursement of production-linked incentives (PLI) for white goods (AC and LED lights) would start this month and that would push the amount of disbursement, which was only Rs 2,900 crore till March 2023.”

"We have identified the sectors. We are going to send the combined note to seek approval of the Union Cabinet. The changes include extending some time (for the pharma sector) and adding some additional products in some sectors. In textiles, we are expanding the definition of certain other products in the technical textiles segment; in drones, we are increasing the amount," the government official added.

The PLI scheme for drones and drone components has a total allocation of Rs 120 crore, spread over three financial years.

Sectors like high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and speciality steel are struggling under the PLI schemes, said a senior official of the commerce and industry ministry.

Issues like timely claim processing, visa-related matters for Chinese professionals and delays in environmental clearances raised by some stakeholders are also in the talks.

PLI scheme aimed at attracting investments

The scheme's purpose is to attract investments, enhance technological capabilities, improve manufacturing efficiency, achieve economies of scale, and enhance global competitiveness for Indian companies.

All 14 sector-specific schemes have been approved by the respective ministries and departments and are at various stages of implementation. The government is expected to disburse approximately Rs 13,000 crore to eligible firms benefiting from these schemes.

The scheme was announced in 2021 for 14 sectors such as telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones and pharma with an outlay of Rs 1.97 lakh crore.

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