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by Mukesh Jagota
The government has decided not to launch production-linked incentives (PLI) for new sectors, beyond the current 14, and three more – modern bicycles, leather and shoes and toys – for which cabinet notes have already been circulated. The possible addition of the three sectors is unlikely to result in any additional spending in the budget, official sources said, adding that the PLI expenditure of 1.97 trillion rupees will not be raised any further.
New schemes are being formulated keeping in mind their labor intensive nature and import substitution potential.
According to sources, the proposed tweaking of the PLI schemes would allow new players to take advantage of the incentives, along with addressing various concerns investors have expressed about procedural ambiguity.
After Tuesday’s workshop with stakeholders, the Department for Promotion of Industry and Domestic Trade (DPIIT) asked the ministries responsible for implementing PLI schemes for different industry sectors to hold a new round of consultations with the beneficiary companies to understand their problems and sources. He said. They added that inputs from the companies will be taken up at the appropriate level to solve the problems.
As the Scheme was carried out after Cabinet approval, some changes would have to be made to the Scheme which might become necessary there to resolve it. However, no major refactoring of the PLIs has been considered.
“All ministries were told at Tuesday’s PLI workshop that while they had so far conducted broader consultations with stakeholders, they must now consult with PLI companies. If problems arise, they should inform DPI so that they can It can move them to the appropriate level of equity.DPIIT is the coordinating ministry for this scheme.
While sectoral interactions with ministries will continue, a broader stakeholder consultation has been scheduled for the first week of October.
In the recent meeting with the government, some companies mentioned the issue of clearance delays affecting the implementation of projects. The difference of opinion with officials was also cited over the interpretation of some items of the plan, such as what can be included when they demand increased investment and production.
The official admitted that with the implementation of the scheme on the ground, some issues had already arisen. FE
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