What Is Production Linked Incentive Scheme? Here’s All You Need To Know

In an effort to enhance home manufacturing and make the nation globally aggressive, the central authorities launched the manufacturing linked incentive (PLI) scheme in March final 12 months. On Wednesday, February 24, the Union Cupboard authorised a Rs 7,350 crore PLI scheme for enhancing the native manufacturing and export of IT merchandise similar to laptops, tablets, private computer systems, and servers. As a part of the plan, incentives value Rs 7,350 crore will probably be supplied over 4 years for the manufacturing of IT {hardware} merchandise within the nation. The authorised PLI scheme for IT {hardware} will assist the nation export IT items value Rs 2.45 lakh crore. (Additionally Learn: Cabinet Approves ₹ 12,000 Crore Production-Linked Incentive Scheme For Telecom Sector )

On February 17, the Union Cupboard authorised Rs 12,195 crore PLI scheme for the telecom and networking merchandise to be able to enhance the nation’s manufacturing capabilities and improve exports. Telecom Minister Ravi Shankar Prasad stated that the scheme will make sure the progress of Make-in-India within the telecom gear area and 5G gear will even come. The scheme outlay is for a interval of 5 years. 

The eligibility beneath the scheme will probably be topic to attaining a minimal threshold of the cumulative incremental funding and incremental gross sales of manufactured items. The inducement construction ranges between 4 and 7 per cent for various classes and years. The fiscal 12 months 2019-20 will probably be handled as the bottom 12 months for computing the cumulative incremental gross sales of manufactured items and web of taxes.

With the PLI scheme, the federal government expects that the nation will probably be well-positioned as a worldwide hub for manufacturing of telecom and networking merchandise. Together with this, an incremental manufacturing round Rs. 2 lakh crore is anticipated to be achieved over 5 years, in keeping with a current analysis report by CARE Rankings. It is usually anticipated that the scheme will deliver over Rs. 3,000 crore funding and generate direct and oblique employment. By incentivizing giant scale manufacturing within the nation, the home worth addition might enhance steadily. The supply of upper incentive to the MSME sector is prone to encourage the home telecom producers to change into a part of the worldwide provide chain.

In November 2020, the federal government authorised the PLI scheme for 10 key sectors which included:

1. Advance Chemistry
2. Digital/Know-how Merchandise
3. Vehicles and elements
4. Prescribed drugs medication
5. Telecom and Networking Merchandise
6. Textile Merchandise: MMF phase and technical textiles
7. Meals Merchandise
8. Excessive Effectivity Photo voltaic PV Modules
9. White Items (ACs & LED)
10. Speciality Metal