PLI disbursement claims set to pick up pace in new year, say sources

The new year may bring positive developments for companies benefiting from the Production-Linked Incentive (PLI) schemes, with disbursement claims expected to gain momentum. According to sources, more companies are likely to file claims for PLI disbursements after finalising quarterly figures through December 2023. Sources added that lower disbursements till now aren’t a concern and are expected to pick up in the coming months.

The current financial year’s disbursement under PLI schemes has been less than ₹1,000 crore, compared to the ₹10,000 crore paid by the government under the PLI schemes till the last financial year.

With a total investment of over ₹1.5 lakh crore under PLI schemes, production or sales by PLI beneficiary companies have been recorded at ₹13 lakh crore.

As per government sources, investments made under PLI schemes have led to the creation of 8 lakh jobs and exports worth ₹4 lakh crore, primarily in the electronics sector.

With manufacturing locations in 150 districts across 24 states, over ₹1.97 lakh crore have been committed by the Union Government under PLI schemes for 5 years starting FY 2021-22.

The schemes were launched for 14 sectors in 2021, including advanced chemistry cell batteries, automobiles, drones, food products, high-efficiency solar PV modules, medical devices, pharmaceuticals, speciality steel, telecommunications, textiles, and white goods.

The current PLI schemes are likely to go on till FY 2028-29.