Extended PLI scheme to cover solar PV, specialised steel

12 Nov 2020 CW Team

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

Priority	Sectors	Implementing Ministry/Department	Approved financial outlay over a 5-year period (in Rs crore)
1	Advance Chemistry Cell (ACC) Battery	NITI Aayog and Department of Heavy Industries	18100
2	Electronic/Technology Products	Ministry of Electronics and Information Technology	5000
3	Automobiles & Auto Components	Department of Heavy Industries	57042
4	Pharmaceuticals drugs	Department of Pharmaceuticals	15000
5	Telecom & Networking Products	Department of Telecom	12195
6	Textile Products: MMF segment and technical textiles	Ministry of Textiles	10683
7	Food Products	Ministry of Food Processing Industries	10900
8	High Efficiency Solar PV Modules	Ministry of New and Renewable Energy	4500
9	White Goods (ACs & LED)	Department for Promotion of Industry and Internal Trade	6238
10	Speciality Steel	Ministry of Steel	6322

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.

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 SchemePrioritySectorsImplementing Ministry/DepartmentApproved financial outlay over a 5-year period (in Rs crore)1Advance Chemistry Cell (ACC) BatteryNITI Aayog and Department of Heavy Industries181002Electronic/Technology ProductsMinistry of Electronics and Information Technology50003Automobiles & Auto ComponentsDepartment of Heavy Industries570424Pharmaceuticals drugsDepartment of Pharmaceuticals150005Telecom & Networking ProductsDepartment of Telecom121956Textile Products: MMF segment and technical textilesMinistry of Textiles106837Food ProductsMinistry of Food Processing Industries109008High Efficiency Solar PV ModulesMinistry of New and Renewable Energy45009White Goods (ACs & LED)Department for Promotion of Industry and Internal Trade623810Speciality SteelMinistry of Steel6322 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.

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