No new schemes in PLI review

THE GOVERNMENT HAS decided not to launch production-linked incentives (PLI) for new sectors, other than the existing 14, and another three new-age bicycles, leather & footwear and toys for which Cabinet notes have already been circulated

- MUKESH JAGOTA

The likely addition of the three sectors is unlikely to result in any extra budget spending, official sources said, adding that the PLI outlay of 1.97 trillion won't be raised any further.

The new schemes are being formulated considering their labour-intensive nature and potential for import substitution.

According to the sources, the proposed tweaking of the PLI schemes will let new players avail the incentives, besides addressing the various concerns expressed by investors about procedural ambiguities.

Following Tuesday's workshop with stakeholders, the department for promotion of industry and internal trade (DPIIT) has asked the ministries responsible for implementing the PLI schemes for different industry sectors to hold a fresh round of consultation with the beneficiary companies to understand their problems, the sources said. The inputs from the firms would be taken up at the appropriate level for resolution of the issues, they added.

However, no major restructuring of the PLIS are being considered.

"All ministries have been told at the workshop on PLI that was held on Tuesday that, while till now they had conducted wider stakeholder consultations, now they should hold a consultation with the PLI companies. If problems come up, they should tell the DPIIT so that it can take them to the appropriate level for redressal," an official said. DPIIT is the coordinating ministry for the scheme.

While sectoral interactions with ministries would continue, the next broader stakeholder consultation has been scheduled for the first week of October.