WITH COMPANIES GETTING just ¥6,0007,000 crore as production-linked incentives (PLIS) after investing â¹1.07 trillion in the last two years, the Narendra Modi government is looking to revamp the whole architecture of the scheme, to ensure that it performs better.
According to sources, a key change that it seeks to bring about if returned to power after elections, is to stagger the release of the incentives in such a manner that significant amounts are received by the beneficiary firms even as they make reasonable levels of investments. Currently, firms need to wait for incentives till the investments lead to incremental rise in output/sales.
Additionally, the criticism that PLIS are targeted at large firms may be addressed with a "carve-out" for MSMEs. Besides, the restructuring might also include new incentives for research & development for creating a manufacturing ecosystem, and new PLIS for sectors that would need such incentives the most but are now left out, the sources added.
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