The Centre is looking to expand the scope of its Production-Linked Incentive (PLI) scheme to a few more sectors. The Finance Ministry, NITI Aayog and line ministries are reportedly discussing the PLI scheme for sectors such as chemicals, fertilisers, solar equipment including solar cells, power equipment sector, electirc vehicle (EV) components (batteries, auto parts), sources told CNBC-TV18.
The PLI scheme was introduced by the government in the electronics manufacturing segment on April 1 earlier this year, under the National Policy on Electronics (NPE) 2019 that aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM).
Also Read | Explained: What is production linked incentive scheme?
Production-linked incentives are offered to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
An incentive of 4-6 percent is given to electronics companies that manufacture mobile phones and other electronic components such as transistors, diodes, thyristors, resistors, capacitors, and nano-electronic components such as micro-electromechanical systems. The PLI scheme for the mobile phone manufacturing segment will be active for five years, with FY2019-20 taken as the base year for calculation of incentives.
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