PLI Schemes For Pharma, Textiles, Drones May Soon Be Tweaked: Report

Introduced in 2021 with an outlay of Rs 1.97 lakh crore, the PLI scheme covers 14 sectors including telecom, white goods, textiles, medical device manufacturing, solar PV modules, drones, and pharma. 

The production-linked incentive (PLI) schemes for sectors of pharmaceuticals, drones, and textiles are likely to be tweaked to encourage investment and boost manufacturing, reported PTI on Tuesday citing a government official. Sectors were identified after inter-ministerial consultations on the performance of PLI schemes for various products. 

Introduced in 2021 with an outlay of Rs 1.97 lakh crore, the PLI scheme covers 14 sectors including telecommunications, white goods, textiles, medical device manufacturing, automotive, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals. 

"We have identified the sectors. We are going to send the combined note to seek approval of the Union Cabinet. The changes include extending some time (for pharma sector) and adding some additional products in some sectors. In textiles, we are expanding the definition of certain other products in the technical textiles segment; in drones, we are increasing the amount," the government official told PTI. 

As per the official, the disbursement of production-linked incentives (PLI) for white goods (air conditioners (AC) and LED lights) is set to commence this month. The more is expected to significantly increase the disbursement amount, which had only reached Rs 2,900 crore by March 2023.

The PLI scheme for drones and drone components, a total allocation of Rs 120 crore has been earmarked, to be spread across three financial years, the report said. 

It further noted that sectors such as high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel have faced challenges in attracting firms for the incentive. On the other hand, the scheme has been thriving in sectors like electronics, pharmaceuticals, medical devices, telecommunications, food processing, and white goods.

The government is trying to address issues raised by stakeholders, including the timely processing of claims, visa-related matters necessitating expertise from Chinese professionals, and delays in obtaining environmental clearances, the report said. 

All 14 sectors covered by these schemes have been officially notified by the respective ministries and departments following due approvals. Implementation of these schemes is progressing through various stages, the report said, adding the government is poised to disburse approximately Rs 13,000 crore to eligible companies seeking benefits under these schemes.