The Finance Minister of India, Nirmala Sitharaman has announced the extension of existing Production-Linked Incentive (PLI) scheme for large scale electronics manufacturing. The scheme has to be implemented from 2020-21 till upcoming five years, but now the scheme will continue till 2025-26.
Now, the participating companies have to achieve their production targets in any five years of duration.
“The incentives were applicable taking the base year of 2019-20. However, companies had been unable to achieve incremental sales due to COVID-19 related lockdown,”says Sitharaman.
In May 2021, the manufacture companies had demanded Indian government to revise the PLI scheme as it may discourage investors from taking up the scheme and investing in the country.
Even, Nitin Kunkolienker, president of the Manufacturers’ Association for Information Technology while talking to a news portal, shared that the PLI was conceptualized by the government in the pre-Covid era, but now there is a serious need to relook the scheme. The target should be revised or instead of four years we should be given five years to qualify for incentives.