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Govt disburses Rs 4,415 crore under PLI scheme; low job creation a concern
About Rs 1,515 crore was disbursed in FY24 till October, while it was Rs 2,900 crore in 2022-23, when payments under the scheme commenced. The government in 2021 announced PLI schemes for 14 sectors with an outlay of Rs 1.97 lakh crore. The central government has disbursed incentive amount of Rs 4,415 crore under its flagship Production-Linked Incentive (PLI) schemes for as many as eight sectors, including large-scale electronics manufacturing, IT hardware, bulk drugs among others till October this fiscal year, a government official said on Wednesday. About Rs 1,515 crore was disbursed in FY24 till October, while it was Rs 2,900 crore in 2022-23, when payments under the scheme commenced. The government in 2021 announced PLI schemes for 14 sectors with an outlay of Rs 1.97 lakh crore. “Incentive amount of around Rs 4,415 crore disbursed under PLI Schemes for eight sectors including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharma, telecom, food processing, and drones,” Additional Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajeev Singh Thakur said in a press conference. On a question regarding low job creation commensurate with investments, Thakur said that several tech driven productions have low job creation. The government said that employment generation, both direct and indirect, is over 6.78 lakh. Former Reserve Bank of India (RBI) governor Raghuram Rajan had raised questions over lack of job creation under the scheme. “The nature of these product lines is such that it is highly technology driven and the requirement of man power is limited. It will be challenging in the future when industry 4.0 comes in. It is a cause of concern but we will see job creation going forward,” Thakur said. Thakur said the departments implementing their respective schemes are responsible for the disbursals. They, along with Project Monitoring Agencies (PMAs), scrutinise the claim applications and sometimes visit the plants, too. He added that it has been observed that in some cases more time gets “wasted” on back-and-forth communication between PMAs and companies, “so it has been directed to ministries and PMAs to create an SOP (Standard Operating Procedure) and reduce the time for processing” of the documents. The remarks assume significance as certain quarters have raised concerns over slow disbursal of fiscal incentives under the scheme. “It has been told to the PMAs and departments to approve the claim and not to raise unnecessary objections,” he added. Source - Indian Express
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