The PMO seems disinclined in course of approving new Manufacturing Linked Incentive (PLI) schemes for additional sectors and lengthening tenures for numerous the present ones with many requests from the enterprise and line-Ministries getting rejected by it or saved in suspension, sources have talked about.
“Remaining month, the PMO rejected a proposal for extension of PLI scheme tenure for picture voltaic panels. It’s additionally not in a position to approve the proposed PLI schemes for toys and footwear, although token outlays had been already allotted for these inside the interim worth vary for FY25,” the availability recognized.
Moreover, Funds 2025-26 had no level out of a model new PLI scheme for electronics components no matter sturdy hopes from the enterprise backed by Ministry of Electronics and Information Experience (MeitY).
“Whereas the last word phrase on new PLI schemes isn’t out, the message from the PMO is obvious that besides a proposal seems notably useful for the financial system, approvals received’t come. Ministries and Departments have been requested to focus on enhancing the working of the prevailing PLI schemes,” a provide talked about.
14 SECTORS
The PLI scheme, defending an entire of 14 sectors was launched in 2021 with an outlay of ₹1.97 lakh crore, to attract investments, incentivise native manufacturing in strategic areas and encourage exports. The help beneath the scheme, primarily based totally on minimal investments and turnover, is obtainable over a interval of 5 years.
The 14 sectors coated embrace mobile manufacturing; drug intermediaries & APIs; medical devices; auto & components, pharma, specialty metallic, telecom merchandise; digital/know-how merchandise; white gadgets, meals merchandise, textiles (MMF section and technical textiles), extreme effectivity picture voltaic PV modules, ACC battery and drones & components.
“An infinite trigger behind the PMO’s cautiousness in growing the scheme is the reality that it has not taken off along with anticipated for many the beneficiary sectors. It wants focus to be on guaranteeing that the prevailing ones select up tempo,” the availability talked about.
In January 2025, the PMO rejected a plea from the Ministry of New and Renewable Vitality for extension of scheme tenures for picture voltaic panels arguing that this might reward the non-performers. The toy and footwear sectors, too, should make do with the schemes to promote native manufacturing launched in Funds 2025-26, as there aren’t any indications of the proposed PLI schemes being authorised, one different provide talked about.
“The digital component producers confronted disappointment in Funds 2025-26 because of no matter most interesting efforts put in by MeitY, the proposed PLI scheme for the sector couldn’t be launched. There isn’t a readability regarding the future as properly,” the second provide talked about.
Textiles PLI
A proposal made by the Textiles Ministry, to extend PLI scheme for man-made and technical textiles devices, to cotton and totally different merchandise as properly, moreover hangs in steadiness.
Aside from mobile manufacturing, which has carried out very properly, and a handful of various sectors akin to electronics, meals processing, prescribed drugs and white gadgets, which have started displaying some promise, the remaining sectors are however to decide on up steam.