The government is considering the need for “minor tweaking’’ of the Production Linked Incentive (PLI) scheme for certain sectors, such as pharmaceuticals and electronics, to meet specific requests of investors including expeditious environmental clearances and visas for technicians and experts required by Chinese vendors, sources have said.

“The Empowered Group of Secretaries (EGoS) to monitor the PLI scheme, headed by the Cabinet Secretary, met on Thursday to review the scheme for sectors, such as pharmaceuticals and large-scale electronics including mobile phones, that are doing well. The idea was to examine their problems and sort them out so that they can perform better,” a source tracking the matter told businessline.

Among the problems that investors have cited, a prominent one is that of delayed environmental clearances for projects. “The EGoS will examine what the particular issues are and how can they be addressed so that environmental clearances do not stay a hurdle,” the source said.

Issuance of visas

Another hurdle faced by Chinese vendors, who are part of the PLI scheme for large-scale electronics, is getting their own technicians and experts from China to help with component manufacturing due to problems with issuance of visas. “The Chinese vendors who are manufacturing their own components in India need expertise from China. For that, timely visas need to be issued to them. This is a matter that is to be resolved,” the source said.

The EGoS on PLI will also soon hold a meeting on PLI sectors that are not doing well, the source added.

The ₹1.97-lakh crore PLI scheme was announced in 2020 to attract investments in 14 sunrise and strategic sectors, with incentives spread over a five-year period, but it is facing severe challenges in many sectors.

Procedural challenges

In June, Commerce & Industry Minister Piyush Goyal carried out a review meeting for the PLI scheme where the industry also participated. The Minister asked beneficiaries to take up procedural challenges faced by them, with respective implementing Ministries and Departments so that reforms can be brought about to make it more effective.

While the PLI scheme has attracted substantial investments in the large scale electronics sector, which includes mobile phones, and has also started showing encouraging results for the pharmaceuticals and food processing sectors, in six sectors there have been no disbursal of incentives because of very low investments and production. These include white goods, automobiles, auto parts, textiles, solar PV modules and ACC battery. In the other five sectors — medical devices, bulk drugs, telecom & networking products, technology products and drones, disbursals have been low.

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