Revamp of 6 lagging PLI schemes likely as government plans review

Representatives of various ministries facing issues with the PLI scheme, representatives of the sector, Niti Aayog officials, and officials who assess the applications will be called for the review meeting.

The Centre will review the status of production-linked-incentive (PLI) schemes which are lagging and may look at course correction in a meeting scheduled for June 27, a commerce ministry official said.

The PLI schemes cover 14 sectors, of which only 8 are doing well. The review will focus on schemes for the remaining 6 sectors including steel and textiles, advanced chemistry cell (ACC) batteries, automobiles & auto components, high-efficiency solar PV modules and white goods where the scheme has not achieved full utilisation, the official told media persons.

“This is the first-of-a-kind meeting where a PLI scheme is being reviewed for the first time. The need for the same was felt when some ministries stumbled upon obstacles during their implementation. A representation of stakeholders will be called for the meeting,” the official said.

Representatives of various ministries and sectors facing issues with the schemes, officials who assess the applications and Niti Aayog officials will be called for the meeting.

The review may lead to a revamp of the PLI schemes of these ministries, the official said. The Ministry of Electronics and Information Technology (MeitY) recently came up with a second version of the PLI scheme for the IT hardware sector with relaxed performance thresholds, Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) said during a press briefing on June 13, Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), said during a press briefing on June 13

As per the official, this is a crucial year for all PLI schemes. “If they don’t take off this year, we will not have much time left. The government may have to undertake a course correction to achieve desired outcomes,” the official said.

The outlay

Of the total outlay of Rs 1.97 lakh crore that is to be given out under the scheme, just Rs 2,900 crore has been disbursed.

“Achieving disbursement of 1.97 lakh crore will be crucial. While 8 sectors are already receiving disbursement, the remaining 6 are yet to begin to receive any. There is a lag but we are not worried, it will happen well with time,” the secretary said.

The 8 sectors that have received PLI include Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components.