PLI scheme registers investments of Rs 1.03 lakh crore, disbursements at just Rs 4,415 crore

The Centre’s Production Linked Incentive (PLI) scheme has registered investments of over Rs 1.03 lakh crore till November 2023 and disbursed Rs 4,415 crore of incentives till date. Officials are hopeful that more disbursements will be made this fiscal but it is unclear whether the target of Rs 11,000 crore for this fiscal will be met.  

“Three to four PLI schemes have seen good response and that gives us hope that other schemes will also join the bandwagon and do well,” said Rajiv Singh Thakur, Additional Secretary, Department for Promotion of Industry and Internal Trade.  

Out of the 14 schemes, those for large-scale electronics manufacturing, food processing, and telecom and networking products have seen good response and are almost reaching their respective targets. However, three to four schemes are yet to start disbursal and are in gestation period and are expected to start disbursals from the next fiscal 2024-25, Thakur told reporters on Wednesday.  

Incentives have been disbursed for eight sectors including large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing and drones and drone components. PLI schemes for ministry of new and renewable energy related to high efficiency solar PV modules and for the ministry of heavy industries have not made any disbursements this fiscal.  

“Disbursements will take place. Investment and production are on track. We are satisfied that these will work out and the Rs 1.97 lakh crore outlay for the PLI scheme will be used up,” Thakur underlined.  

The investments under the PLI scheme have led to production and sales of Rs 8.61 lakh crore and employment generation – both direct and indirect -- of over 6.78 lakh. “PLI Schemes have witnessed exports surpassing Rs 3.20 lakh crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products,” said a statement by the Ministry of Commerce and Industry.  

As on date, 746 applications have been approved in 14 Sectors with expected investment of over Rs 3 lakh crore. 176 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones. Several MSMEs are serving as investment partners and contract manufacturers for large corporates.  

The PLI scheme was launched in 2020 and expanded to 14 schemes with an outlay of Rs 1.97 lakh crore to create national manufacturing champions and generate employment opportunities for the country’s youth.