The government is planning to make changes to the production-linked incentive (PLI) schemes in sectors like textiles and pharma. They want to make the incentive payments quarterly instead of annually to reduce delays in processing claims. Currently, there is not much progress seen throughout the year because of the annual payment system. The industry department, responsible for managing the schemes, has been urging other departments to switch to quarterly payments.
During the financial year 2023-24, the government has disbursed Rs 6,800 crore compared to their estimate of Rs 11,000 crore. Officials have also mentioned that new schemes for labor-incentive sectors like apparel, toys, and footwear are being planned to create more job opportunities. However, the timing of these new schemes has not been decided yet. A Cabinet note is being prepared to introduce the new schemes and make changes to the existing ones.
Inquiries sent via email to the Department of Promotion of Industry and Internal Trade have not received any response so far. In the previous years, PLI schemes were launched for 14 sectors, including mobiles, drones, telecom, textiles, automobiles, white goods, and pharmaceutical drugs. The progress of these schemes has been uneven. The scheme for large-scale electronics manufacturing, particularly focusing on smartphones, has been the most successful, leading to a significant increase in exports. However, progress has been slower than expected in sectors like steel, textiles, battery, and automobiles.
To make the PLI scheme more attractive, the textiles ministry is planning to add more product lines and offer more flexibility due to a lukewarm response from private players. The government hopes that these changes will encourage more applications and investment proposals. In the case of the PLI scheme for bulk drugs, some changes in guidelines are expected, and the scheme’s duration may be extended. All these proposed changes will require approval from the Cabinet.