BackGovt approves PLI scheme worth ₹2 lakh crore for 10 key sectors
'The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports,' Javadekar said'Financial support aimed at bringing investments into the country,' Sitharaman said
PremiumThe Union Cabinet on Wednesday approved Production-Linked Incentives (PLI) worth up to ₹2 lakh crore for 10 manufacturing sectors for next five years. "This move will enhance India’s manufacturing capabilities," said Union minister Prakash Javadekar while announcing the decision. The 10 key sectors that will get the benefit of production-linked incentive include automobiles and auto components, pharmaceuticals drugs, specialty steel, capital goods, technology products, white goods (ACs and LEDs), telecom and networking products, textiles, high efficiency solar PV modules and advanced battery cells.
"The PLI scheme will make Indian manufacturers globally competitive, attract investment and enhance exports," he further added. The government think tank NITI Aayog identified 10 sectors as key sectors which will help attract investments to shore up revenue. "Critical sunrise sector will get necessary support from the government through PLI scheme," said finance minister Nirmala Sitharman.
"This move is aimed at promoting PPP in social and economic infrastructure leading to efficient creation of assets, ensuring operation and maintenance, make economically/socially essential projects commercially viable," Javadekar said.
The final proposal of PLI scheme for individual sectors will be approved by an empowered finance committee and Union cabinet. The concerned departments and minister will start implementing schemes immediately, Sitharaman added. There is no cap on the number of companies that will be eligible for PLI under each category for now, she added.
Commenting on government's latest decision to boost manufacturing in the country, Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP said, "Some of the critical sectors such as textiles which have been under severe stress due to various reasons are expected to welcome this and could definitely play role in reviving the sector. This is definitely significant step in reducing the cost of operations in India and will definitely encourage investors. Further industries such as textiles, automobiles, etc. have significant capacity and potential to scale up the operations and the PLI would give impetus to the same."
"Financial support aimed at bringing investments into the country, and make production in the country attractive," finance minister added.
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