NEW DELHI: The government is handling a stack of propositions - from coal gasification to food items and chemicals - to be included under the production-linked incentive (PLI) scheme for which Rs 2 lakh crore has actually been designated over a five-year period.
There are indicators that the government may broaden the coverage to include a few more sectors.Already 14 sectors, ranging from electronic items to crucial pharma active ingredients, speciality steel and drones, become part of the scheme that was announced under a plan to turn India into a production base for domestic and global markets and at the same time minimize dependence on imports.But even as the companies that will get into these sectors are settled, ministries have signed up with the bandwagon to propose one sector after another, with authorities fearing that the whole focus would be diluted.The wishlist includes sectors such as bikes, more items from the textiles (beyond technical fabrics), a variety of chemicals, containers, toys and footwear.
In specific cases detailed notes have likewise been drifted with some of them making it to the level of clearance at a panel of officers.
The whole idea was to transfer to scale rather of providing rewards to lakhs of exporters.
We should persevere, said an essential federal government functionary, arguing against the dilution of focus.The financing ministry had held its ground on increasing the outlay beyond the promised Rs 2 lakh crore and any expansion will lead to less allowance for the identified sectors, an official cautioned.
There are also demands from ministries such as electronic devices and IT to increase the allowance for a few of the items that are part of the PLI basket.Officials said in a number of cases taking a look at policy shortages will help resolve sectoral problems and pointed to schedule of quality leather as one of the areas.
Likewise, a few of the global companies have actually pointed out that they are willing to scale up their operations in the identified sector without financial support from the government however will require help in developing an environment of MSMEs and suppliers to meet higher requirements, which are currently being imported in large quantities.