Extended PLI scheme to cover solar PV, specialised steel
The Government of India has extended the Production-Linked Incentive (PLI) Scheme to 10 new sectors with additional financial outlay of Rs 1,460 billion over a five-year period to enhance India’s manufacturing capabilities and enhancing exports. The new sectors that are included for the scheme are provided in the table below.
The scheme was first launched in April 2020 for mobile manufacturing and electronic components, critical raw materials (drug intermediaries) and active pharmaceutical ingredients (API), and medical devices.
The PLI scheme will be implemented by the concerned ministries and departments (as mentioned in Table) and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the cabinet. Savings, if any, from one PLI scheme of an approved sector can be utilised to fund that of another approved sector by the Empowered Group of Secretaries.
Table: Ten new sectors under PLI Scheme
Approved financial outlay over a 5-year period (in Rs crore)
Advance Chemistry Cell (ACC) Battery
NITI Aayog and Department of Heavy Industries
Ministry of Electronics and Information Technology
Automobiles & Auto Components
Department of Heavy Industries
Department of Pharmaceuticals
Telecom & Networking Products
Department of Telecom
Textile Products: MMF segment and technical textiles
Ministry of Textiles
Ministry of Food Processing Industries
High Efficiency Solar PV Modules
Ministry of New and Renewable Energy
White Goods (ACs & LED)
Department for Promotion of Industry and Internal Trade
Ministry of Steel
The new scheme will be in addition to the already notified PLI schemes for three sectors—Mobile Manufacturing and Specified Electronic Components, Critical Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients, and Manufacturing of Medical Devices—with financial outlays of Rs 51,311 crore.
PLI Scheme is a part of Aatmanirbhar Bharat initiative launched by the Union Government to promote an efficient, equitable and resilient manufacturing sector in the country. “Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further. Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities,” said the government press release.