~6,800 crore PLI disbursed in FY24

Incentives worth ~6,800 crore were disbursed among the eligible beneficiaries of production-linked incentive (PLI) schemes in 2023-24 against the government estimate of ~11,000 crore, said Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT), on Wednesday. Singh also shared the government’s plans to make the PLI schemes for textiles, bulk drugs, food products, and solar PV modules relatively attractive by adding more product lines and extending the timelines. Furthermore, the PLI scheme for drones could see an increase in allocation due to its good offtake.

Though the DPIIT secretary refrained from divulging specific details about the lower than expected disbursement, he assured that investments and production under such schemes are on track. “(Cumulative) investment of about ~1.13 trillion had already been reported until February-end. Production/ sales are also about ~9.5 trillion, employment (number) is 800,000, and exports have reached ~3.45 trillion. These are big achievements,” he told Business Standard in an interview.

Government officials earlier attributed less disbursement to several factors, including firms' inability to claim incentives due to unfulfilled obligations, insufficient applications, and a limited number of applicants in some PLI schemes. In a few cases, the gestation period ended in FY24, and incentives can only be claimed from FY25 onwards. To address these issues, the government is simplifying the processes involved in the disbursement of incentives. Government departments are being encouraged to proceed with quarterly disbursement of incentives, instead of an annual payout.