PLIs In 14 Sectors Clock Investments Worth Over Rs 1.06 Lakh Crore Till Dec 2023

The govt launched PLI schemes for 14 sectors in 2021, such as telecom, white goods, textiles, medical devices, high-efficiency solar PV modules, and pharma, etc and set an outlay of Rs 1.97 lakh crore

The data revealed that the pharmaceuticals and drugs sector clocked the majority of investments of Rs 25,813 crore, till December 2023, bypassing expectations of Rs 17,275 crore

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Production-linked incentive schemes (PLI) clocked investments worth over Rs 1.06 lakh crore till December 2023, government data revealed. The PLI schemes attracted investments in 14 sectors, with pharma and solar modules contributing to almost half of the overall funds received.

On the other hand, schemes in sectors such as IT hardware, auto, auto components, textiles, and ACC battery storage remained weak, reported PTI. Notably, the government launched PLI schemes for 14 sectors in 2021, such as telecommunication, white goods, textiles, manufacturing of medical devices, specialty steel, high-efficiency solar PV modules, automobiles, food products, advanced chemistry cell batteries, drones, and pharma. It set an outlay of Rs 1.97 lakh crore for the schemes. 

The data revealed that the pharmaceuticals and drugs sector clocked the majority of investments of Rs 25,813 crore, till December 2023, bypassing expectations of Rs 17,275 crore. Primary beneficiaries in the sector included Dr Reddy’s Laboratories, Cipla, Glenmark Pharma, Biocon, and Wockhardt Ltd. 

Following this was the solar PV modules segment which attracted investments worth Rs 22,904 crore, against the expected investment of Rs 1.10 lakh crore. The beneficiaries in the sector included Shirdi Sai Electricals, Adani Infrastructure, Tata Power Solar, and Reliance New Energy Solar Ltd. 

Robust investments were seen in some other sectors such as bulk drugs which received funds worth Rs 3,586 crore, as compared to projections of Rs 3,939 crore, medical devices with investments of Rs 864 crore against expectations of Rs 1,330 crore, food processing with inflow of Rs 7,350 crore against Rs 7,541 crore expected, and telecom with investments of Rs 2,865 crore as compared to expectations of Rs 4,014 crore.

The IT hardware sector attracted the lowest investment of Rs 270 crore against the expected funds of Rs 2,517 crore. Other sectors that reported weak investments included auto and auto components, textiles, and ACC battery storage. 

The government is analysing and could possibly revise the scheme in the under-performing sectors, the report said citing an official. As of October in the 2023-24 fiscal year, the government disbursed Rs 4,415 crore as part of the scheme for eight sectors, including pharma and electronics.