Production Linked Incentive: Know What is PLI scheme; List of Sectors included under it & Other Details

Production Linked Incentive (PLI) Scheme was notified on April 1, 2020 for Large Scale Electronics Manufacturing. The government now plans to include around 10 more sectors under the ambit of PLI Scheme. Know what is PLI Scheme & what all sectors are included under it here.

PLI Scheme
PLI Scheme

The Ministry of Electronics and Information and Technology (MeitY) notified the Production Linked Incentive (PLI) Scheme on April 1, 2020 for Large Scale Electronics Manufacturing with an aim to boost domestic manufacturing of mobile phones in India. With the launch of this PLI Scheme, the government looked forward to attract large investments in manufacturing mobile phones including the Assembly, Testing, Marking and Packaging (ATMP) units. As expected, the Scheme provided impetus to India's electronics sector at the global level. The companies that were enrolled under the scheme were offered with a production linked incentive.

After witnessing the huge success of the PLI Scheme in terms of number of applications received from the domestic manufacturers and the unprecedented growth in electronics manufacturing, the government later added medical devices, Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) under the scheme to boost manufacturing of medicinal drugs and devices in India.

Now, the Central Government looks forward to further expand the ambit of the PLI Scheme with the inclusion of about ten more sectors under it, apart from mobile phones, pharmaceutical ingredients and medical devices. Know the important details of the scheme below:

What is Production Linked Incentive (PLI) Scheme?

The Production Linked Incentive (PLI) Scheme is a Central Government scheme that was notified in April 2020 for Large Scale Electronics Manufacturing to provide financial incentives for domestic manufacturing of goods and also to attract large investments.

The scheme was initially launched for domestic manufacturing of Mobile Phones and Specified Electronic Components and was later rolled out for pharmaceutical ingredients and medical devices. The PLI Scheme resonates with the ambitious Aatma Nirbhar Bharat campaign and Make in India initiative to make India a self-reliant nation.

What incentive is offered to companies under the PLI Scheme?

The Production Linked Incentive (PLI) Scheme provides 4% to 6% incentive on incremental sales (over base year, 2019-20) to eligible companies for manufacturing goods for 5 years period, subsequent to the base year.

Who can apply under the PLI Scheme?

Companies that are registered in India and are involved in the manufacturing of goods covered under the Target Segments of the scheme can apply under the Scheme. The applicant can also operate existing or new manufacturing unit at one or more locations in the country.

Which are the Sectors included under the PLI Scheme?

Have a look at the list of sectors that are currently included under the scheme:

Sector

Target Segments

Mobile Phones Manufacturing

Mobile Phones

Specified Electronic Components: SMT components, transistors, diodes, thyristors, resistors, capacitors, Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks, Sensors, transducers, actuators, crystals, System in Package (SIP), Micro / Nano-electronic components, Assembly, Testing, Marking and Packaging (ATMP) units

Manufacturing of Bulk Drugs

Pharmaceutical Ingredients (Drugs)

Fermentation based KSMs/Drug Intermediates

Fermentation based niche KSMs / Drug Intermediates / APIs

Key Chemical Synthesis based KSMs/Drug Intermediates

Other Chemical Synthesis based KSMs/Drug Intermediates/APIs

Check here complete details of this segment

What all sectors are expected to be included under the PLI Scheme?

With an aim to make India self-reliant in manufacturing of goods and commodities, the Government plans to includes eight to ten more sectors under the Production Linked Incentive (PLI) Scheme. These sectors could be food processing sector, textiles sector, etc.

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