High-level govt committee flags payment delay concerns in PLI schemes: Report

The purpose of the schemes is to attract investments in key sectors and cutting-edge technology

A high-level government committee has raised concerns over delays in payment to companies in the production linked incentive (PLI) schemes,
Business Standard reported.

The committee has called for “corrective steps” across departments for smooth implementation of the PLI scheme, the report added.

As per the report, citing govt data, the government had allocated Rs 1.97 trillion for 14 PLI schemes three years ago in sectors like mobiles, drones, solar, telecom, textile, and automobiles. As of December 2023, investment worth Rs 1.06 trillion has been made and nearly 500,000 jobs are created.

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Moneycontrol couldn't independently verify the report.

The high-level committee is chaired by the Cabinet secretary with representatives from the Department for Promotion of Industry and Internal Trade (DPIIT), NITI Aayog, the Department of Economic Affairs, and the Department of Financial Services.

As per the report, the committee has now tasked the DPIIT to push all nodal agencies responsible for implementing the schemes, as well as ministries and government departments, to streamline the workflow of disbursement and handhold companies to file correct claims.

The DPIIT and the finance ministry did not respond to a query sent by the publication.

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The scheme was announced in 2021 for 14 sectors like telecommunication, 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.

The purpose of the schemes 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.