Government Calls for Urgent Action on PLI Scheme Delays

New Delhi, Jun 24 (KNN) In a significant development, a high-level government committee has expressed serious concern over persistent delays in payments to companies participating in the Production-Linked Incentive (PLI) schemes.

The committee, chaired by the Cabinet Secretary, has called for immediate "corrective steps" across departments to ensure smooth implementation of this flagship initiative aimed at boosting domestic manufacturing.

The PLI scheme, launched three years ago with an allocated budget of Rs 1.97 trillion across 14 sectors, has shown promising results with investments of Rs 1.06 trillion and the creation of nearly 500,000 jobs as of December 2023. However, the slow pace of incentive disbursement has emerged as a major hurdle.

In response to these challenges, the committee has tasked the Department for Promotion of Industry and Internal Trade (DPIIT) with pushing all nodal agencies, ministries, and government departments to streamline the disbursement process.

The committee has also emphasised the need for handholding companies to file correct claims.

The Department of Financial Services has been directed to monitor project management agencies (PMAs) and ensure swift settlement of claims.

This move comes after disbursements fell short of the government's estimate of Rs 11,000 crore in 2023-24, with only Rs 6,800 crore disbursed by the end of March.

The committee chair reportedly expressed displeasure over delays in onboarding dedicated domain experts for PLI sectors and creating standard operating procedures (SOPs).

PMAs and nodal ministries were previously tasked with developing SOPs to reduce document processing time by June 2024.

Industry sources reveal that several sectors have appealed for advance payment of incentives to spur their manufacturing plans, particularly beneficial for new and smaller players.

The coming months will be crucial in determining whether the government can effectively address these issues and realise the full potential of this ambitious initiative to transform India's manufacturing landscape.

(KNN Bureau)