Public procurement norms may be tweaked to aid makers under PLI
The Indian government is considering changes to its public procurement rules to benefit manufacturers participating in production-linked incentive (PLI) schemes. One proposal being evaluated is granting deemed local supplier status to companies that contract manufacturing to PLI beneficiaries. This move aims to boost domestic production and provide greater market access to PLI participants in government procurement. Key Points
Economic TimesGTRI flags slow progress in payment of sops under PLI schemes
The Rs 4,415 crore disbursement is only 2.25 per cent of the total outlay of Rs 1.97 lakh crore of incentives over five years under the PLI schemes announced in 2020, the Global Trade Research Initiative (GTRI) said on Sunday. This slow fund spend is unsurprising, considering that setting up greenfield or new manufacturing operations takes time, it said. PLI criteria for various sectors include thresholds on investments, production, sales, degree of localization, inputs used and many more. Manufacturers may not be able to tick on all boxes, GTRI Co-Founder Ajay Srivastava said. Key Points
Economic TimesBudget 2024: Is Modi govt's pet scheme still strong enough to make India a manufacturing giant?
Interim budget: India's Production-Linked Incentive (PLI) scheme, launched in 2020, aims to boost manufacturing, decrease imports, and increase exports. While critics, including former RBI governor Raghuram Rajan, question its effectiveness, the Commerce and Industry Ministry reports over Rs 95,000 crore invested and 746 approved applications till November 2023. The proposed industrial policy seeks to enhance competitiveness and identify areas of cost advantage over China. Key Points
Economic TimesPLI schemes witness over Rs 1.03 lakh crore of investment till November 2023
New Delhi [India], January 17 (ANI): Production-linked incentive (PLI) schemes witnessed over Rs 1.03 lakh crore of investment till November 2023, which has led to production or sales of Rs 8.61 lakh crore and employment generation (direct and indirect) of over 6.78 lakhs, Ministry of Commerce and Industry said in a press release. PLI schemes […] Key Points
ThePrintToy manufacturing: No new PLI sops on cards for now, says DPIIT secy
The Centre is running PLI programmes worth ₹1.97 lakh crore for 14 sectors in which India aims for self-reliance. These sectors include mobile manufacturing and specified electronic components, critical key starting materials, drug intermediaries and active pharmaceutical ingredients, speciality steel, automobiles and auto components. Key Points
Economic Times
Centre not planning any new PLI schemes: DPIIT secretary
Responding to a query on the decision to put the toy PLI proposal on hold, DPIIT secretary Rajesh Kumar Singh said, “Currently we are focused on getting these 14 PLI schemes up and running in a good way. For the time being, the new PLI schemes are not being considered and we will focus on ensuring that these existing schemes get implemented well. Thereafter well see.” Key Points
Economic TimesBudget 2024: Will FM Sitharaman expand PLI scheme to other sectors or give it a miss?
Union Budget: The primary goal of the production-linked incentive (PLI) scheme is to generate jobs, which India sorely needs. The government has stated that the PLI scheme could be extended to more sectors, and what would be a more opportune moment than the budget speech to announce that? The Centre made its intention clear at the very start of the New Year, as it extended the Production-Linked Incentive (PLI) Scheme for Automobile and Auto Components by a year by making a few amendments. Key Points
Economic TimesRs 95,000 cr investment in PLI till Nov: DPIIT review
As per the review, the government has approved 746 PLI applications till November 2023 and established PLI units in more than 150 districts across 24 states. Moreover, import substitution of 60% has been achieved in the telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment). Key Points
Economic TimesCentre not considering any new PLI schemes: DPIIT secretary
The focus now is to strengthen and support the existing PLI schemes across 14 key sectors. But the decision will be a setback for sectors like port and shipping, heavy industries, steel and mining sectors, which were looking at new PLI schemes to manufacture import substitution products. Key Points
mintPLI schemes have started to yield desired outcomes
Pointing out that the PLI for Food Processing are on track, Anita Praveen, Secretary, Ministry of Food Processing Industries said that more than 2 lakh jobs have been added to the 80 lakh existing ones in this sector. “We are completing our investment target by March 2024 under the PLI,” she said while adding that the Food Processing Ministry is now to push for smaller units that will likely generate the largest growth for the sector. Key Points
Economic Times
Railways plans PLI scheme for train parts
The Indian Government is planning a production-linked incentive (PLI) scheme for train component makers, aiming to attract foreign manufacturing firms and reduce imports. A consultancy firm will be selected this month to work on the scheme. Key Points
Economic TimesGovt to sort out green nods, visas to Chinese professionals under PLI schemes
The Indian government is working to address issues raised by stakeholders regarding production-linked incentive schemes, such as delays in claims and environmental clearances. The schemes cover 14 sectors, including automobiles, textiles, and food products. Cabinet secretary Rajiv Gauba has held meetings with the sector-related officials to discuss progress so far. Key Points
Economic TimesIndia's PLI scheme is up for review: What's the status of mega manufacturing plan?
India's government is reviewing its Production-Linked Incentive (PLI) scheme and considering reopening the window for some sectors. The PLI scheme aims to boost Indian manufacturing by subsiding production to better compete with other countries. Currently available in 14 manufacturing sectors, there have been mixed results with the scheme so far. Key Points
Economic TimesPLI schemes to be reviewed by fiscal year-end for any 'course correction'
Department for Promotion of Industry and Internal Trade (DPIIT) secretary Rajesh Kumar Singh said the respective ministries have to see if PLI disbursement is low or if firms are not able to meet their performance thresholds. In such cases, sometimes relaxations may be required like the way it has been done for the IT sector, he said. Key Points
Economic TimesPLI: Commitment crosses initial plan, to rise further
Outlay at Rs 2.05 trn against initial plan of Rs 1.97 trn. Key Points
Financialexpress
Government plans PLI scheme for basic chemicals used in pharma, other industries: Mansukh Mandaviya
Chemicals and Fertilisers Minister Mansukh Mandaviya announced plans to bring a PLI scheme for basic chemicals to make the country self-reliant and ensure affordability in the agro-chemicals, petro-chemicals, and pharmaceutical active pharmaceutical ingredient (API) industries. Mandaviya stressed the need for research and development in the field and asked MSMEs to use the government's open facilities. Key Points
Economic TimesDo not introduce PLI for small firm-dominated products: GTRI to Govt
Think tank GTRI has advised the Indian government not to extend its PLI scheme to small firms for products like leather shoes and handicraft, arguing that such a move could force business away from such enterprises. The PLI scheme is in place across 14 sectors such as textiles and pharma and is aimed at boosting manufacturing, exports and job creation. Key Points
Economic TimesWhy PLI for cellphone making should be mostly for export, not domestic market
Incentives should not be extended beyond five years: the biggest risk is that they will continue forever in flop sectors to save face and jobs. Demands from additional sectors to get PLI must be resisted. 14 sectors are already too many. PLI is still likely to fail where it backs national champions for domestic sales in a protected market. Key Points
The Economic TimesCabinet secretary to review progress of PLI scheme in all 14 sectors on Thursday
Cabinet secretary Rajiv Gauba is expected to review the progress of the production linked incentive scheme (PLI) for all the 14 sectors on Thursday, sources said. The meeting assumed significance as the government disbursed only Rs 2,900 crore till March 2023 out of Rs 3,400 crore claims received under the scheme. Key Points
Economic TimesElon Musk’s Tesla can apply for battery PLI sops: Heavy Industries Ministry
In 2022, the Centre had awarded PLI support for setting up 30 GWh of ACC battery manufacturing capacity by 2030. Ola Cell Technologies won the lions share with 20 GWh capacity in their kitty. ACC Energy Storage (bid as Rajesh Exports) and Reliance New Energy Battery Storage were awarded incentives for 5 GWh each. The government expects PLI incentives will help these three players set up GWh of battery manufacturing capacity. Key Points
Economic Times
Govt assures PLI beneficiaries of timely resolution of issues, next high level meet in Sept end
The government took feedback from industry and other government departments on the challenges being faced by PLI beneficiaries. More than 150 people attended the meeting and there were five beneficiaries from each of the PLI scheme sectors. Key Points
Economic TimesPLI scheme to only give kickstart, ultimately competition will prevail: Piyush Goyal to industry
Commerce and Industry Minister Piyush Goyal encouraged firms benefiting from the Production-Linked Incentive (PLI) scheme to consider it as an initial boost rather than a long-term subsidy. Goyal emphasized the need for competition and urged companies to provide constructive criticism and feedback for better implementation of the scheme. Key Points
Economic TimesTelecom PLI garners Rs 2,725 cr investments till end-Oct: Devusinh Chauhan
The Indian government has received Rs 2,725 crore investments from 42 applicant companies under the production-linked incentive (PLI) scheme for telecom gear manufacturing, according to Devusinh Chauhan, minister of state for communications. The scheme has generated over 15,500 new jobs and exported products worth Rs 8,804 crore. The PLI scheme was launched in June 2021 and has catalyzed the production of telecom equipment in India. Key Points
Economic TimesGovt says 30 companies taking advantage of PLI scheme for making millet-based products
Around 30 companies, including 22 MSMEs, are benefiting from the Production-Linked Incentive (PLI) scheme for manufacturing millet-based products in India. The scheme encourages the use of millets in Ready to Cook/Ready to Eat (RTC/RTE) products, with an outlay of Rs 1,000 crore. The companies aim to promote millet-based products under this initiative. Key Points
Economic TimesMobile GST hike gives government more than PLI outlay: Industry Executives
In fact, the five-year smartphone PLI scheme will leave a revenue surplus of ₹11,000 crore if only the Centre's GST (goods and services tax) collections are taken into consideration, industry body India Cellular and Electronics Association (ICEA) said in a June 5 letter to the finance ministry. The government increased the GST on mobile phones to 18% from 12% on April 1, 2020, the day the smartphone PLI scheme was announced. Key Points
Economic Times
Disbursement of Rs 79 crore incentives under PLI for white goods expected in last quarter of this fiscal
Indian government is set to disburse around Rs 79 crore in fiscal incentives under the Production Linked Incentive (PLI) scheme for white goods in the last quarter of the financial year. The PLI scheme for white goods aims to promote domestic manufacturing of air conditioners and LED light components. Some selected beneficiary firms have already started production, contributing to the disbursement target. Key Points
Economic TimesAuto companies await clarity on PLI subsidy for FY23
Auto industry companies in India are awaiting clarity on whether they will receive incentive funds for the first year of the ₹25,938 crore production-linked incentive scheme, which has been in effect for over a year. The standard operating procedure (SOP) for the scheme, which is required for products to be certified, was released on April 27, 2023, causing a delay. Companies are also concerned that key changes agreed upon by the industry and government have not been incorporated into the final draft of the SOP. Additionally, some manufacturers were wrongfully claiming subsidies in violation of conditions. Key Points
Economic TimesPLI schemes report card: Production/sales touch Rs 8.61 lakh crore; over 6.78 lakh jobs created so far
PLI schemes form a major plank of India's Atmanirbhar plan. Currently, PLI schemes for 14 key sectors (with an incentive outlay of Rs. 1.97 lakh crore) are under implementation. Key Points
Economic TimesPLI scheme allocation hiked by 33% in Budget 2024
BUDGET ANNOUNCEMENT: The Narendra Modi government has increased the budget for the Production-Linked Incentive (PLI) scheme to Rs 6,200 crore for FY25. The scheme, which currently covers 14 sectors, has attracted investments of over Rs 1.03 lakh crore and generated employment for over 6.78 lakh individuals. However, concerns have been raised about limited employment generation in sectors like leather, garment, handicrafts, and jewelry. Key Points
Economic TimesGovt received 'excellent' response for hardware PLI scheme from cos, says IT Min Ashwini Vaishnaw
The Indian government has received a positive response from global companies, including Lenovo, HP, Dell, and Acer, for its Production Linked Incentive (PLI) Scheme for hardware. The government has received applications from 32 companies for the scheme, which aims to promote the manufacturing of laptops, PCs, tablets, and other devices in India. However, Apple has not shown interest in the scheme. Key Points
Economic Times
PLI 2.0 in Budget 2024: Pushing the envelope towards ‘Making for the World’
Interim Budget: India's manufacturing sector is being reinvented to achieve the country's ambition of becoming a $10 trillion economy. The Production Linked Incentives (PLI) scheme has played a strategic role in elevating India's manufacturing capabilities and attracting global companies. The scheme has already shown success in sectors like electronics, pharmaceuticals, and telecom. To further drive innovation, the government should extend PLI benefits to R&D investments. A dedicated PLI scheme for the chemicals sector could boost its growth and position India as a global hub. Additionally, a PLI scheme for the space sector could help India become a global leader in space technology. Key Points
Economic TimesDell, Acer, HP among 27 manufacturers approved by Cabinet under Production Linked Inventive scheme for IT hardware
New Delhi [India], November 18 (ANI): Building on the success of the Production Linked Incentive scheme (PLI) for mobile phones, the Union Cabinet led by Prime Minister Narendra Modi has approved PLI Scheme – 2.0 for IT hardware, said a government release on Saturday. This scheme covers laptops, tablets, all-in-one PCs, Servers and Ultra Small […] Key Points
ThePrintRe-auction of PLI for batteries soon
The Indian government will re-auction the performance-linked incentives (PLI) for 20 GW advanced chemistry cell (ACC) battery manufacturing, following the allocation of the capacity to Hyundai Global Motors, which was found to be impersonating Hyundai Motor. Estimated incentives of ₹7,240 crore will be offered under the ₹18,100 crore PLI scheme disbursed over five years. Key Points
Economic TimesPLI schemes for labour-intensive toys, leather sector on the cards
PLI scheme is showing significant dividends across many sectors. The intention is to also roll out this PLI scheme for more labour-intensive sectors such as toys, leather and footwear and other such sectors where employment benefits will be more significant, Singh said at an industry interaction. Key Points
Economic TimesCabinet secretary reviews progress of PLI scheme in certain sectors; another meeting likely soon
Cabinet secretary Rajiv Gauba on Thursday reviewed the progress of the production-linked incentive scheme (PLI) for sectors that are generally doing very well like pharma and electronics, a senior official said. Another such review is expected for the remaining sectors, the official said. Key Points
Economic Times
GTRI calls for simplifying PLI scheme; cautions against misuse by industry
The government has rolled out Production Linked Incentive (PLI) scheme for 14 sectors, including telecommunications, electronics, white goods and pharma with an outlay of Rs 1.97 lakh crore. Key Points
Economic TimesCabinet clears ₹17,000 cr-IT Hardware PLI Scheme 2.0
The Cabinet, chaired by Prime Minister Narendra Modi, on May 17 approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay of ₹17,000 crore. Key Points
The HinduIndia may pull plug on FAME II after next fiscal
The likely shift comes as the ministry of heavy industries, which administers FAME, has launched an investigation into the alleged misappropriation of subsidies under the scheme by two-wheeler EV makers, government officials familiar with deliberations said. It has halted the release of subsidies in some cases. Key Points
Economic TimesGovt to review progress of PLI scheme on Jan 12
The scheme was announced in 2021 for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore. Key Points
Economic TimesRs 30 crore govt grant for drones manufacturing: Govt disburses PLI scheme incentives to 23 firms
The scheme has features including a total incentive of Rs 120 core spread over three financial years, which is nearly double the combined turnover of all domestic drone manufacturers in FY 2020-21. Also, the PLI rate for this scheme is 20 per cent of the value addition, which is the highest among PLI schemes and this rate is kept constant at 20 per cent for all three years. Key Points
Financialexpress
Apple's Indian ecosystem emerges as top job creator, employing over 1,50,000 directly since PLI scheme lau
The apple ecosystem in India, buoyed by the production-linked incentive (PLI) scheme for smartphones, has become a significant job creator, employing over 150,000 individuals directly since august 2021. Most of these jobs are filled by first-time job seekers aged 19-24, with an additional 300,000 employed indirectly. Key Points
Economic TimesEmpowered committee in PLI scheme approves Rs 1,000 cr disbursement to beneficiaries of electronics sector
The Empowered committee in the production-linked incentive (PLI) scheme has approved a disbursement of Rs 1,000 crore to beneficiary firms in the electronics sector. The government has already disbursed Rs 2,900 crore out of claims worth Rs 3,400 crore received under the scheme. The PLI scheme aims to boost domestic manufacturing, create jobs, and support exports. Sectors such as electronics, pharma, and medical devices are performing well under the scheme, while sectors like solar PV modules, ACC batteries, textiles, and specialty steel are not picking up well. Key Points
Economic TimesGovt, industry discuss ways for successful implementation of PLI schemes
Senior government officials and industry players have discussed ways to enhance collaborations and create a clear action plan for successful implementation of PLI schemes. Around 1,200 delegates including beneficiary companies under the PLI scheme for 14 sectors and officials met to discuss and chart out the strategy for effective implementation. Officials from ministries and departments, including NITI Aayog, electronics, IT, telecommunications, heavy industries, renewable energy, and pharmaceuticals, participated in the discussions. Commerce and industry Minister Piyush Goyal encouraged industry's constructive feedback and collaborative engagement to shape the policies and effectiveness of the schemes. Key Points
Economic TimesGovt mulls tweaks to PLI for textile, pharma & food processing
The government is in the process of modifying the production-linked incentive (PLI) schemes for textiles, food processing, and pharmaceuticals. A cabinet note has been finalized to make these sectors more attractive for companies participating in the PLI program. The move aims to enhance investment in sectors beyond electronics, pharma, food processing, and telecom, which have been the primary beneficiaries of the PLI schemes so far. A ₹1.97 lakh crore PLI scheme covering 14 sectors, including textiles and pharmaceuticals, was announced in 2021. Key Points
Economic Times