production-linked incentive (PLI) scheme

Question 1

What are the objectives?

Answer 1

• Make domestic manufacturing competitive and efficient.
• Create economies of scale.
• Make India part of global supply chain.
• Attract investment in core manufacturing and cutting edge tech.
• Competitive manufacturing would in turn lift exports.

Question 2

Which 10 sectors are included?

Answer 2

The 10 sectors 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.

Question 3

What are the monetray provisions?

Answer 3

to encourage domestic manufacturing investments in 10 more sectors, with an estimated outlay of about ₹1.46 lakh crore over the next five years.

Question 4

What?

Answer 4

Bhartachya companies na production jevdha jaast kartil tevdhe jaast paise directly dile janaret

• Foreign companies na pan bhartat unit set karayala incentive detil
• make India a global hub for manufacturing telecom equipment.

Question 5

elligibility?

Answer 5

• incremental(i.e.vadhat janara) investment and incremental sales of manufactured goods cha threshold cross kela pahije
• 2019-20 ->base year to calculate incremental values
• There is condition in the scheme that additional investment in plant and machinery should be done.

Question 6

Investment threshold?

Answer 6

• 10 cr. for MSME & 100 cr. for others

- Once qualified, the investor will be incentivised up to 20 times of minimum investment threshold

Question 7

Update

Answer 7

approved for pharmaceuticals and IT hardware -> Hence total sector become 12 sectors.

Question 8

What is meaning of incremental/additional sales?

Answer 8

Company will get an incentive of 4% to 6% on incremental/additional sales. For example earlier a company was selling goods worth Rs. 1 lakh in a year and now its sales increased to Rs. 1.2 lakh. Then the company will get incentive of 4% on Rs. 20,000 = Rs. 800 (i.e.government will give this money to companydirectly). There is condition of additional investment in plant and machinery also under this scheme.

Question 9

Scheme is implemented by?

Answer 9

concerned ministries/departments.

Question 10

Update:April 1

Answer 10

Cabinet has approved a production-linked incentive scheme for the food processing industry

Question 11

Objectives

Answer 11

1. Support creation of global food manufacturing champions.
   - Strengthen select Indian brand of food products for global visibility
   - higher income to farmers.

Question 12

Applicability:

Answer 12

• ready-to-cook and ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese, organic products, free-range eggs, poultry meat and egg products
• applicants selected would be required to invest in plant and machinery in the first two years.

Question 13

Overall summary/background

Answer 13

In all, 15 PLI schemes are being rolled out(after Apr 15)

Question 14

Update:Apr 15

Answer 14

Also approved for

1) White goods (air-conditioners and LED lights)
2) High-efficiency solar photovoltaic modules.