Government of India announced Production Linked Incentive (PLI) for which of the following sectors? 1. Mobile Manufacturing and Specified Electronic Components. 2. Critical Key Starting materials. 3. Drug Intermediaries and Active Pharmaceutical Ingredients. 4. Manufacturing of Medical Devices.
Production Linked Incentive refers to a rebate given to producers.
It is calculated as a certain percentage of sales of the producer.
The calculation of incentives is based on incremental production at a high rate of growth.
The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
It is an outcome-based that means incentives will be disbursed only after production has taken place.
The scheme focuses on size and scale by selecting those players who can deliver on volumes.
The selection of sectors covering cutting-edge technology, sectors for integration with global value chains, job-creating sectors and sectors closely linked to the rural economy, is highly calibrated.
Sectors under PLI:
Mobile Manufacturing and Specified Electronic Components.
Critical Key Starting materials.
Drug Intermediaries and Active Pharmaceutical Ingredients.
Manufacturing of Medical Devices.
The Government has expanded this scheme to 10 more sectors with incentives worth 2 lakh crore over a 5-year period. The additional sectors are:
Advance Chemistry Cell (ACC) Battery
Electronic/Technology Products
Automobiles & Auto Components
Pharmaceuticals drugs
Telecom & Networking Products
Textile Products: MMF segment and technical textiles