Govt Could Disburse Incentives Worth Rs 79 Crore Under PLI Scheme For White Goods In Q4FY24

The official noted that even with the disbursement, the target of Rs 11,000 crore incentive distribution for different sectors falling under the scheme during FY24 might fall short.

The government is expected to distribute fiscal incentives worth Rs 79 crore under the production linked incentive (PLI) scheme for white goods in the last quarter of the current fiscal year, a senior official noted, saying that certain beneficiary firms of these schemes have begun production. 

The PLI scheme on white goods intends to boost domestic manufacturing of air conditioners and LED light components. The anonymous official noted that even with the disbursement, the target of Rs 11,000 crore incentive distribution for different sectors falling under the scheme during the 2023-24 (FY24) fiscal period might fall short, reported PTI. “Lot of the disbursement will come in the last fiscal. Lot of projects are in gestation period. In the white goods sector, we are expecting about Rs 79 crore disbursement in the last quarter,” the official added. 

Notably, out of the total 64 chosen beneficiaries of the PLI scheme under the white goods category, about 15 have begun production. These beneficiaries chose a gestation period of up to March 31, 2022, while the remaining beneficiaries opted for a gestation period of up to March 31, 2023, and are at different stages of implementation, the official stated. The scheme is set to be implemented over seven years from 2021-22 to 2028-29 and includes an outlay of Rs 6,238 crore. 

Elaborating on the plan to enhance the scheme for sectors such as toys, the official added, “It will be decided after a review of the scheme. We are taking stock and what is the progress so far. The progress is better in some, and in some sectors, changes are required. So an inter-ministerial consultation is on.” 

The official stated that till March 2023, incentives worth Rs 1.98 lakh crore have been distributed as part of the PLO scheme. Further, a surplus of Rs 1,000 crore in incentives has been disbursed for the year for firms involved in electronics manufacturing. PLI schemes for sectors like electronics, mobile manufacturing, pharma, and food processing have been performing well, the official noted, while certain sectors like textiles can expect some ‘course correction’. 

The scheme was launched in 2021 for 14 sectors including telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharma with an outlay of Rs1.97 lakh crore. Meanwhile, PLI schemes for segments that aren’t gaining popularity include advanced chemistry cell batteries, textile products, and specialty steel.

The official added, “The government is trying to sort out issues such as timely processing of claims, visa-related matters where vendors require Chinese professionals' expertise, and delay in getting environmental clearances that have been raised by the stakeholders of the schemes. The purpose of the schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector; and make Indian companies and manufacturers globally competitive.”