Union Cabinet approves PLI scheme for 10 sectors

On November 11, 2020, the Union Cabinet chaired by PM Narendra Modi approved Production Linked Incentive Scheme for ten sectors. The schemes are worth of Rs 1.46 lakh crores. The GoI had earlier announced the scheme for pharmaceuticals and electronic products alone. Now, upon being extended the scheme is to return several benefits.

Key Highlights

Under the scheme, the Central Government is to provide incentives based on additional production. This will help to increase exports of India.

The following approvals have been made by the cabinet

• The Advance Chemistry Cell Battery manufacturing sector is to receive Rs 18,100 crore. This is to be implemented by NITI Aayog and Department of Heavy Industries.
• The Electronic technology and Electronic Products manufacturing industries will receive incentive of Rs 5,000 crores. It is to be implemented by the Ministry of Electronics and Information Technology
• The Automobiles and Auto components manufacturing industry will receive incentives of Rs 57,042. The Department of Heavy Industries is to implement the scheme.
• The Telecom and Networking Products are to receive Rs 12,195 crores. The scheme is to be implemented by Department of Pharmaceuticals.
• The Textile Products manufacturing industries will receive Incentive of Rs 10,683 crores. It is to be implemented by Ministry of Textiles.
• The Food Products manufacturing industries are to receive incentives of Rs 10,900 crores. It is to be implemented by Ministry of Food Processing Industries.
• The High Efficiency Solar PV Modules manufacturing industries are to receive incentives of Rs 4,500 crores. It is to be implemented by Ministry of New and Renewable Energy.
• The White Goods manufacturing industries will receive incentive of Rs 6,238 crore. It is to be implemented by Department for Promotion of Industry and Internal Trade.
• The specialty steel sector industries will receive incentive of Rs 6,322 crores. It is to be implemented by Ministry of Steel.

Background

The scheme aims to increase India’s manufacturing capabilities. The automotive industry received the maximum incentive as it was majorly hit due to COVID-19.

Month: Current Affairs - November, 2020