The Empowered Committee in production-linked incentive (PLI) scheme approved a disbursement of Rs 1,000 crore to beneficiary firms of the electronics sector, a senior government official said. The committee in a recent meeting approved the disbursement of funds, while the actual fund allotment would take place in some days, the official revealed.
As of March 2023, the government distributed Rs 2,900 crore, out of total claims worth Rs 3,400 crore under the scheme, reported PTI. The scheme plans to encourage domestic manufacturing, generate jobs, and support exports. The disbursement of Rs 1,000 crore would mark the first one in the current fiscal year. The PLI scheme was announced in 2021, for 14 sectors, including large-scale electronic manufacturing, white goods, textiles, manufacturing of medical devices, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones and pharmaceuticals with an outlay of Rs 1.97 lakh crore.
The report further noted that the scheme has been performing well in sectors like electronics, pharma, and medical devices. About 32 beneficiaries have received approval under the PLI scheme for large-scale electronics manufacturing, including mobile phones and certain electronic components.
Notably, the responsibility for proposing the disbursement lies with the respective ministries/departments. These ministries/departments are also accountable for implementing the scheme. It is considered by the Empowered Committee comprising NITI Aayog, department for promotion of industry and internal trade, ministry of electronics and informational technology, and representatives from the Department of Expenditure, Department of Revenue, Department of Economic Affairs and office of DGFT (directorate general of foreign trade).
The committee offers it’s recommendations for distributing the incentives to chosen beneficiaries under the PLI scheme. The respective departments also look at course corrections in the scheme with regards to sectors where the disbursement is low or the companies are unable to meet their performance targets. Notably, high-level review meetings have taken place recently to review the scheme progress.
Another official stated that there is hope that the disbursements will improve soon. Healthy PLI perfoming sectors include large-scale electronics manufacturing, pharma, food processing, and white goods. On the other hand, sectors like high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products and speciality steel, are not performing well.