The government on Wednesday approved a production-linked incentive (PLI) scheme for ten key sectors for a five-year period totalling to Rs 2 lakh crore. The scheme will help encourage domestic manufacturing, reduce imports and generate employment as the government works to bolster economic growth. The financial outlay for the new scheme will be Rs 1,45,980 crore.
Here is all you need to know:
1. The 10 sectors that will be get the incentives include Advance Chemistry Cell (ACC) battery. It is entitled to get Rs 18,100 crore. Other sectors are electronics and technology products (Rs 5,000 crore); automobiles and auto components (Rs 57,042 crore); pharmaceuticals and drugs (Rs 15,000 crore); telecom and networking products (Rs 12,195 crore); textiles products (Rs 10,683 crore); food products (Rs 10,900 crore); high efficiency solar PV modules (Rs 4,500 crore); white goods (Rs 6,238 crore) and speciality steel (Rs 6,322 crore)
2. The scheme aims at making Indian manufacturers’ competitive globally.
3. According to the scheme, companies will get incentives on incremental sales from products manufactured in domestic units.
4. The scheme was introduced in March. It was meant for mobile phone industries.
5. The PLI scheme,as finance minister Nirmala Sitharaman said, will also provide encouragement to the critical sunrise sectors by ensuring necessary support from the government in addition to creating jobs and linking India to global value chain.
6. Foreign companies are also encouraged to set shop in India as the government is providing incentives.
7. The PLI scheme will be implemented by the ministries/departments concerned and will be within the overall financial limits prescribed.
8. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
9. 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.
10. Any new sector for PLI will require fresh approval of the Cabinet.