Centre unveils PLI to encourage domestic manufacturing
- Posted By
17th Nov, 2020
- The government unveiled a production-linked incentive scheme to encourage domestic manufacturing investments in ten more sectors, with an estimated outlay of about ?1.46 lakh crore over the next five years.
What is PLI Scheme?
- As a part of the National Policy on Electronics, the IT ministry had on April 1 notified a scheme which would give incentives of 4-6 per cent to electronics companies which manufacture mobile phones and other electronic components.
- Under the PLI scheme, cash subsidies will be provided to companies as a percentage of incremental sales from the base year.
- The base year is the year when the scheme comes into effect.
- The percentage of the incentive will depend on the ‘disadvantage’ faced by each sector in domestic manufacturing and will vary from sector to sector.
- The PLI scheme will be implemented by the ministries/departments concerned and adhere to the prescribed financial limits.
- The ten sectors had been identified on the basis of their potential to create jobs and make India self-reliant.
- They include food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photo-voltaic modules and white goods such as air conditioners and LEDs.