Extended PLI scheme to cover solar PV, specialised steel
POWER & RENEWABLE ENERGY

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

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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