Govt lags in PLI disbursements: GTRI
Since announcement of PLI schemes in 2020, only Rs4,415 cr was disbursed, a mere 2.25% of total outlay of Rs1.97 lakh-cr incentives
image for illustrative purpose
This slow fund spend is unsurprising, considering that setting up Greenfield or new manufacturing operations takes time. Manufacturers may not be able to tick on all boxes, said Ajay Srivastava, co-founder, GTRI
New Delhi: Economic think tank GTRI has flagged the slow progress in disbursement of sops under production-linked incentive (PLI) schemes and suggested the government to simplify the criteria so as to expedite grant of incentives and push domestic manufacturing. The Rs4,415 crore disbursement is only 2.25 per cent of the total outlay of Rs1.97 lakh crore of incentives over five years under the PLI schemes announced in 2020, the Global Trade Research Initiative (GTRI) said on Sunday.
“This slow fund spend is unsurprising, considering that setting up greenfield or new manufacturing operations takes time. PLI criteria for various sectors include thresholds on investments, production, sales, degree of localization, inputs used and many more. Manufacturers may not be able to tick on all boxes,” GTRI Co-Founder Ajay Srivastava said.
Citing an example, he said in one of the cases, the government suspected the invoice value and disallowed the incentive of a few hundred crore. “In most cases, it is difficult to ascertain the actual value of a product or invoice. Doing this makes incentives subjective and delays the settlement of claims,” Srivastava said.
