Government May Carry Forward Rs 40,000 Crore PLI Scheme Surplus

New Delhi, Feb 5 (KNN) In a significant development, the government has accumulated a surplus of over Rs 40,000 crore from the Production Linked Incentive (PLI) scheme, which had an initial outlay of Rs 1.97 lakh crore across 14 beneficiary sectors.

Officials are now contemplating the expansion of the scheme to additional sectors, contingent upon the "efficacy and usefulness" of such a move, reported businessline.

While the interim budget had allocated Rs 1 lakh for the PLI scheme for toys and leather, pending approval from the Union Cabinet, other sectors are also being considered.

The decision to include more sectors will only be made after assessing the performance of the scheme in the existing 14 sectors.

The PLI scheme, introduced in 2021, encompasses various sectors, including mobile manufacturing, pharmaceuticals, auto, electronic products, textiles, and more.

However, only Rs 4,415 crore has been disbursed thus far for eight sectors, including electronics manufacturing, IT hardware, medical devices, pharmaceuticals, telecom, and food processing.

With a surplus of Rs 40,000-45,000 crore expected from the allocated corpus, officials emphasise the importance of effective implementation in the current sectors.

Simultaneously, plans for potential expansion are underway, considering sectors like toys and leather & footwear, which may top the list pending Cabinet approval.

The interim budget has hinted at potential inclusions, specifying that allocations for toys and leather sectors would be made post-Cabinet approval.

Additionally, proposals from various Departments and Ministries for sectors such as chemicals, petrochemicals, furniture, home appliances, and specialty bicycles are being considered.

"The focus is on ensuring the scheme's successful implementation for existing sectors. The surplus may then be utilised for expanding the scheme, evaluating sectors based on their efficacy and usefulness," stated an official involved in the matter.

The Cabinet's decisions will play a pivotal role in shaping the future of the PLI scheme's expansion.

(KNN Bureau)