The review comes at a time when the Ministry aims to make the program more effective and plans to redress the situation in areas where the program is not delivering the expected results.
The Union government is set to review the flagship Production Linked Incentive (PLI) scheme on January 12, Secretary Department for Promotion of Industry and Internal Trade (DPIIT) said on Thursday. Rajesh Kumar Singh.
The government is focusing on existing PLI schemes for 14 sectors and is not considering new PLIs, he said. The review comes at a time when the Ministry aims to make the program more effective and plans to redress the situation in areas where the program is not delivering the expected results.
In a statement last month, PPIT said 746 applications have been approved till November 2023 and over Rs 95,000 crore investments have been received till September 2023. The government estimates that production or sales worth Rs 7.80 lakh crore took place through the project, creating over 6.4 lakh jobs.
Former RBI Governor Raghuram Rajan criticized the PLI scheme in a social media post, saying that job creation under the scheme was not proportional to the investments made and the government should disclose more data because millions and billions of public money have been pumped into this program.
“The PLI review will take place on the 12th. Currently, we are focusing on getting these 14 PLIs. All working in the right direction. So as of now, the new PLIs are yet to be considered and we will focus on ensuring that these existing plans are implemented well and we will review them thereafter,” Singh said at a press conference. Singh also said the ministry is conducting a third-party review of the PLI scheme for electronic goods (air conditioners and LED lights).
“The purpose of each measure is to get real feedback on how useful these interventions are and what quantifiable outcomes are from them,” Singh said.
PLI scheme announced in 2021 for 14 sectors, such as telecommunications, white goods, textiles, medical equipment manufacturing, automobiles, special steel, food products, solar photovoltaic modules high performance, advanced cell chemistry, drones and pharmaceutical industry. The budget is Rs 1.97 lakh crore.
“Telecom sector has achieved 60% import substitution and India has become almost self-reliant in antennas, GPON (Gigabit Passive Optical Network) and CPE (Customer Premises Equipment). Imports of raw materials in the pharmaceutical sector have decreased significantly. Unique intermediates and bulk drugs are manufactured in India, including penicillin-G, and technology transfer has taken place in the production of medical devices such as CT, MRI, etc. “, PIIT said in a statement last month.
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