PLI subsidy payouts remain in slow lane

The pace of subsidy payout to eligible companies under the production-linked incentive (PLI) scheme continues to remain in the slow lane even as the governments flagship scheme to boost manufacturing entered its fourth year in the financial year 2024-2025 (FY25).

- SHREYA NANDI

The government has disbursed close to ₹4,000 crore or around a fourth of its annual subsidy payment estimate to the eligible beneficiaries under the 14 PLI schemes, a person aware of the matter said.

According to the government's internal estimates and calculations, subsidy or incentive payout under the PLI scheme is expected to be ₹15,000 crore during FY25. In the first six months of the financial year, incentives were paid to eight out ofthe 14 PLI sectors, including large scale mobile manufacturing, bulk drugs, white goods, telecom, automobiles, the person cited above told Business Standard.