The government is set to pay ₹4,000 crore by March to beneficiaries of the production-linked incentive (PLI) scheme as it lines up its expansion, likely to be announced in the Budget, a report by Business Standard stated.
“The first installment towards seven schemes (of the 14) will be paid by March. Installments for mobile manufacturing, pharmaceuticals, and food processing have been paid,” a senior government official told the market daily.
The Budget may extend the PLI scheme to six-seven more sectors such as toys, garments and home textiles, electronics, bicycle components, leather, and furniture, the report added.
The government rolled out the PLI scheme in automobiles, drones, specialty steel, textiles, new and renewable energy, pharmaceuticals, among others, in 2021-22.
As per the report, the scheme is worth ₹1.97 trillion and will hold good for five years. More schemes are being planned because the existing ones have found a good take-up, the government official said.
The budgetary allocation of the PLI scheme is being firmed up by utilising the savings from the first set of schemes along with fresh allocations, the official cited above said.
As of last year, the savings had been ₹11,484 crore, informed BS. An empowered group of secretaries then decided that those could be utilised or reallocated to any other government department in need of funds, a provision that was made while designing the PLI scheme, noted the report.
According to the finance ministry’s data, as of November, ₹40,992 crore was there across the 14 sectors. More than 600 applications were approved. Production is expected to be worth ₹2.85 trillion and 198,000 jobs will be created, stated BS.
The official added that the savings from the PLI schemes could go up since the allocated funds may not be required for the existing ones.