Parliamentary Committee Red Flags Meity Over Underutilised PLI Funds

(MENAFN- KNN India) New Delhi, Jul 30 (KNN) The Ministry of Electronics and Information Technology (MeitY) has faced scrutiny from a parliamentary committee over the surrender of Rs 1,574 crore in production-linked incentive funds during fiscal year 2024.

The ministry attributed the unused allocation to lower-than-expected performance by companies participating in the schemes.

According to a Parliamentary Standing Committee on Communications and Information Technology report tabled in Parliament last week, MeitY utilised only Rs 12,847 crore in FY24 under various schemes.

This figure fell significantly short of the ministry's initial budget estimate of Rs 16,549 crore, which was subsequently revised downward to Rs 14,421 crore.

The ministry informed the committee that approximately 70 percent of the underutilised funds were allocated for the Production-Linked Incentive scheme and the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India.

MeitY explained that expenditure and disbursement of incentives under these programs depend on the delivery capacity of private companies, placing the matter beyond the ministry's direct control to ensure optimal fund utilisation.

In response to concerns about fund underutilisation, MeitY reported that it has begun substantially reducing estimates received from industrial units at the budget estimate stage. However, the parliamentary committee rejected these explanations as insufficient.

The committee emphasised that the ministry bears greater responsibility for proper monitoring, facilitation, and effective implementation of the schemes, stating that these responsibilities cannot be left entirely to private companies.

The panel described the ministry's justification as not understandable given its oversight role.

The committee has directed MeitY to examine potential deficiencies in coordinated efforts for fund utilisation through meetings with companies and stakeholders.

The directive aims to facilitate more realistic and reasonable decision-making processes regarding scheme implementation and budget allocation.

(KNN Bureau)

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