DPIIT urges departments to adopt quarterly applications for PLI incentives

As several departments are now accepting quarterly applications for incentive disbursements under production-linked incentive schemes to accelerate claim processing, the Department for Promotion of Industry and Internal Trade advises other departments, except those with challenges like food processing, to follow the trend.

“This shift to quarterly applications is already in place for many departments. We are encouraging others to follow suit, though sectors like food processing find it difficult due to the smaller number of claims,” the official informed PTI.

This development is significant as PLI beneficiaries have been urging the timely disbursement of claims. The PLI scheme, announced in 2021 for 14 sectors—including telecommunications, white goods, textiles, medical devices, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals—has an outlay of Rs 1.97 lakh crore.

To date, only Rs 9,700 crore has been disbursed to PLI beneficiaries, which is about 5% of the total allocation. In 2023–24 alone, Rs 6,800 crore was disbursed, the official said.

Previously, the scheme guidelines allowed applications for incentives to be submitted only after the financial year ended, with annual claims due within nine months of the year’s end. In February, the Global Trade Research Initiative flagged the slow disbursement of PLI scheme benefits and suggested simplifying the criteria to speed up incentives and boost domestic manufacturing.

The PLI criteria for various sectors include thresholds on investments, production, sales, localization, and inputs used, which manufacturers may struggle to meet, said GTRI Founder Ajay Srivastava.

By December 2023, PLI schemes for the 14 sectors had attracted over Rs 1.06 lakh crore in investments, with the pharmaceutical and solar module sectors accounting for nearly half of the total. Regarding disbursements under the PLI scheme for white goods (AC and LED lights), the official noted, “We have exceeded the target of Rs 70 crore.” PTI