The interim Budget has made a token allocation for Production-Linked Incentive (PLI) schemes for two new sectors — toys and leather & footwear — for FY25, subject to approval by the Union Cabinet.
Overall, the interim Budget FY25 has pegged disbursements from PLI at ₹6,200 crore next fiscal, about 33 per cent higher than an estimated ₹4,645 crore this fiscal, and this could be increased in supplementaries if needed.
“PLI outlay will grow by leaps and bounds going forward. Every industry has a gestation period. Those PLI schemes that were started 3-4 years ago, like electronics, where the gestation period is small, have come into operation. But sectors like, say textiles, auto components, and steel have longer gestation periods. So, as these will come into operation, PLI outlay will grow by leaps and bounds. These are estimates. If all this gets used up, we will provide more in the supplementaries,” Commerce & Industry Minister Piyush Goyal told businessline.
The proposed extension of the scheme to the leather & footwear sector has been envisaged with an outlay of ₹2,600 crore while for the toys sector, the token outlay is fixed at ₹3,489 crore.
The schemes for toys and leather and footwear have not yet been given a nod to Cabinet. When asked when the schemes might be announced, Goyal said: “My saying anything would be prejudging what the Cabinet decides. So, these are decisions taken by the Prime Minister-led Cabinet, and whenever whatever they decide, we will know.”
scheme period
According to Budget documents, the scheme period for the proposed PLI scheme for leather & footwear is FY24 to FY32. “The yearly outgo of incentives depends upon variables. The benefits availed by a manufacturer under the existing IFLDP scheme shall be adjusted while calculating the incentives for the same unit under this PLI scheme. The scheme is not yet approved by the Cabinet. Hence, the token provision has only been made for FY25, the Budget document stated.
The PLI scheme for toys is recommended with an outlay of ₹3,489 crore for a scheme period of FY25 to FY32. “An entity availing benefits under any other PLI scheme of the Govrenment of India shall not be eligible for the same product. The scheme is not yet approved by the Cabinet. Hence, the token provision has only been made for FY25,” it added.
The government had originally expected PLI disbursements of ₹11,000 crore this fiscal.
With inputs from Meenakshi Verma Ambwani