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By Mukesh Jagota
The government has decided not to launch production-linked incentives (PLI) for new sectors, other than the existing 14, and another three — new-age bicycles, leather & footwear and toys — for which Cabinet notes have already been circulated. The likely addition of the three sectors is unlikely to result in any extra budget spending, official sources said, adding that the PLI outlay of Rs 1.97 trillion won’t be raised any further.
The new schemes are being formulated considering their labour-intensive nature and potential for import substitution.
According to the sources, the proposed tweaking of the PLI schemes will let new players to avail the incentives, besides addressing the various concerns expressed by investors about procedural ambiguities.
Following Tuesday’s workshop with stakeholders, the department for promotion of industry and internal trade (DPIIT) has asked the ministries responsible for implementing the PLI schemes for different industry sectors to hold a fresh round of consultation with the beneficiary companies to understand their problems, the sources said. The inputs from the firms would be taken up at the appropriate level for resolution of the issues, they added.
As the scheme has been implemented after the Cabinet approval, some of the changes to the scheme that might become necessary would have to be taken there for resolution. However, no major restructuring of the PLIs are being considered.
“All ministries have been told at the workshop on PLI that was held on Tuesday that, while till now they had conducted wider stakeholder consultations, now they should hold a consultation with the PLI companies. If problems come up, they should tell the DPIIT so that it can take them to the appropriate level for redressal,” an official said. DPIIT is the coordinating ministry for the scheme.
While sectoral interactions with ministries would continue, the next broader stakeholder consultation has been scheduled for the first week of October.
At the last meeting with the government, some companies flagged the issue of delays in clearances which is impacting the implementation of the projects. Also cited was the difference of opinion with the officials on the interpretation of some of clauses of the scheme like what can be included when they claim incremental investment and production.
The official admitted that as the scheme gets implemented on the ground, some issues have indeed come to light. FE
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