Cabinet Okays PLI Scheme worth Rs 2 Lakh Cr for 10 Sectors including PV Modules, Battery, LED

With an aim to enhance India’s manufacturing capabilities and strengthen exports under Atmanirbhar Bharat abhiyan, the government has approved the Production-Linked Incentive (PLI) scheme for 10 key sectors, including high-efficiency solar photovoltaic (PV) modules, Advance Chemistry Cell (ACC) battery, automobiles & auto components, and white goods (ACs & LED), taking the total outlay for such incentives to nearly Rs 2 lakh crore over a 5-year period.

The scheme will also help in reducing imports and generate employment as the government works to bolster economic growth. The financial outlay for the new scheme will be Rs 1,45,980 crore, and the ten sectors entitled to get the incentives include high-efficiency solar photovoltaic (PV) modules (Rs 4,500 crore), Advance Chemistry Cell (ACC) battery (Rs 18,100 crore), automobiles & auto components (Rs 57,042 crore), white goods (ACs & LED) (Rs 6,238 crore), electronic/technology products (Rs 5,000 crore), pharmaceuticals drugs (Rs 15,000 crore), telecom & networking products (Rs 12,195 crore), textile products: MMF segment and technical textiles (Rs 10,683 crore), food products (Rs 10,900 crore), and speciality steel (Rs 6,322 crore).

On the decision, Finance Minister Nirmala Sitharaman said that the PLI scheme will provide great incentives for manufacturers and help the country move towards the objective of 'Aatmanirbhar Bharat' (Self-Reliant India).

The Cabinet also decided to extend the viability gap funding scheme to social infrastructure sectors. The scheme is currently available only for projects concerning economic infrastructure.

“The Cabinet has taken two very important decisions... both of which, if you ask me at a time like this, are going to give a right impetus to the economy, because we are looking at Aatmanirbharta,” Sitharaman said reported PTI, adding that they will help in making India part of the global value chain.

The PLI scheme, she said, will also provide encouragement to the critical sunrise sectors by ensuring necessary support from the government in addition to creating jobs and linking India to global value chain.

 “Over the next five years, this is today estimated, that the new PLIs that we are bringing in for these 10 identified sectors will involve an expenditure of about Rs 2 lakh crore. So this is something which we are very happy to announce that the Cabinet has given clearance for this...,” Sitharaman said.

An official release said the approved financial outlay over the five-year period for these 10 sectors will be Rs 1,45,980 crore. Under another PLI scheme, an outlay of Rs 51,311 crore has already been approved.

“We are yet again proving that the policy that we are taking up even in PLI through which we want manufacturers to come to India is clearly to say we want to build on our strength but yet link with the global value chains.

“... so this PLI is also aimed at getting investments into the country. The government is giving financal support that these financial incentives will make it atttractive to produce in India and selection of sectors have been based on that,” Sitharaman said reported PTI.

An official release said the scheme across these 10 sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology, ensure efficiencies, create economies of scale, enhance exports and make India an integral part of the global supply chain.

The PLI scheme will be implemented by the concerned ministries/ departments. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.

Savings, if any, from one PLI scheme of an approved sector can be utilised to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet.