(MENAFN- KNN India)
New Delhi, Jun 19 (KNN) In a move to expedite the clearance of claims, several government departments have commenced accepting applications for incentive disbursements under the Production Linked Incentive (PLI) schemes on a quarterly basis, as per a senior official.
The Department for Promotion of industry and Internal Trade (DPIIT) has advocated for other departments to adopt this practice, reported ET.
"Many departments have initiated accepting quarterly applications. We are encouraging others to follow suit, except in certain cases where they face challenges, such as the food processing sector, where the number of applications is relatively small," stated the official.
This development holds significance as certain beneficiaries of the PLI schemes have urged the respective departments for timely disbursement of claims.
Introduced in 2021, the PLI scheme encompasses 14 sectors, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals. The scheme carries a substantial outlay of Rs 1.97 lakh crore.
However, despite the scheme's ambitious scope, only Rs 9,700 crore, approximately 5 percent of the total estimates, has been disbursed to PLI beneficiaries thus far.
In the fiscal year 2023-24, the disbursement figure stood at Rs 6,800 crore, according to the official.
Previously, the scheme guidelines stipulated that applications for incentives could be submitted after the end of the financial year to which the claim pertained.
Annual claims could be submitted only once and within nine months of the financial year's conclusion.
In February, the Global Trade Research Initiative (GTRI), an economic think tank, highlighted the slow progress in the disbursement of incentives under the schemes.
GTRI suggested that the government simplify the criteria to expedite the grant of incentives and bolster domestic manufacturing. The PLI criteria for various sectors encompass thresholds on investments, production, sales, degree of localisation, inputs used, and several other factors, posing challenges for manufacturers to meet all requirements.
As per government data, the PLI schemes across 14 sectors have attracted investments exceeding Rs 1.06 lakh crore till December 2023, with the pharmaceuticals and solar modules sectors accounting for nearly half of the total investments.
Regarding the PLI scheme for white goods, the official stated, "We have exceeded the target of Rs 70 crore."
(KNN Bureau)
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