Pli Scheme
PLI Scheme (Production Linked Incentive Scheme)
The Production Linked Incentive (PLI) scheme is a flagship scheme introduced by the Indian government in Budget 2020-21 to attract investments and boost domestic production of key industries. It offers financial incentives to manufacturers and producers who undertake production of specified goods within India.
Objectives:
- To attract large-scale manufacturing investments and create employment opportunities.
- To boost domestic production of goods and reduce dependence on imports.
- To spur economic growth and accelerate industrialization.
Eligibility Criteria:
- The company should be incorporated in India and have a minimum turnover of Rs. 50 crore in the preceding financial year.
- The company should undertake production of goods under the PLI scheme.
- The company should invest a minimum of 20% of the project cost in plant and machinery.
Incentives:
- Cash Incentive: 20-25% of the eligible capital expenditure.
- Tax Incentives: Exemption from corporate tax for 5 years.
- Interest Subsidy: 2-4% on loans taken for setting up the plant.
- Additional Incentives: Duty drawback, free trade agreements, and access to export subsidies.
Key Industries:
The PLI scheme covers a wide range of industries, including:
- Automobiles
- Electronics
- Pharmaceuticals
- Renewable Energy
- Critical Components
Implementation:
The PLI scheme is implemented through a web-based platform called “PLI Scheme Portal.” Companies interested in applying for incentives can submit their applications online. The government has set up a dedicated task force to process applications and provide support to eligible companies.
Benefits:
- Reduced cost of production.
- Increased profitability.
- Access to global markets.
- Creation of new jobs.
Overall, the PLI scheme is a significant initiative by the Indian government to boost domestic production and attract investment. It has the potential to usher in a new era of industrial growth and employment creation.
