Government to Revamp PLI Scheme to Focus on MSMEs

New Delhi, Jun 19 (KNN) The Indian government is undertaking a major revamp of the Production Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing across sectors.

The key changes involve relaxing norms for release of funds to companies by allowing quarterly applications instead of annual basis.

New sectors like toys, furniture and apparel are being added, with a focus on micro, small and medium enterprises (MSMEs).

Incentives will also be provided for research and development to create a manufacturing ecosystem. Special carve-outs and coverage are being introduced for MSMEs in labor-intensive sectors.

The moves come as only around Rs 9,700 crore out of the Rs 1.97 lakh crore funds earmarked for the PLI scheme have been disbursed so far, despite being launched over three years ago across 14 sectors.

A senior government official stated, "We have started accepting quarterly applications in many departments to speed up disbursements."

The PLI scheme was first introduced in 2020 to boost domestic manufacturing and reduce imports across sectors like pharmaceuticals, electronics and automotive.

While companies have invested over Rs 1 lakh crore under the scheme so far, a review was necessitated to accelerate investments and production across sectors.

The revamped policy is expected to be a key focus area in the upcoming Union Budget 2024-25. Inclusion of labor-intensive sectors like toys and furniture is aimed at promoting job creation and benefiting MSMEs.

(KNN Bureau)