PLI in the works for heavy equipment
NEW DELHI : The Union government is working on a production-linked incentive (PLI) scheme worth ₹12,000 crore for heavy machinery used in mining and construction, two people aware of the development said. The heavy industries ministry is currently seeking industry inputs on product coverage, implementation and quantum of incentives, the people said on condition of anonymity. The scheme size may vary between ₹8,000 crore and ₹12,000 crore, but discussion on this is yet to conclude.
The PLI scheme will aim to attract investment in manufacturing large-sized machines used in mining coal and other minerals, as well as construction. It would also incentivize the production of components required by the sector, a big chunk of which is imported for local manufacture even now. Once the draft is finalized, the heavy industries ministry will seek approval from the commerce and finance ministries over the next couple of months, the people said.
It aims to operationalize the scheme either this fiscal year or early next fiscal year after securing cabinet clearance, with incentives flowing from 2025-26 till the end of 2029-30. Under its ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives, the government launched several PLI schemes beginning in April 2020 to make Indian manufacturers globally competitive, attract investments, enhance exports, reduce dependence on imports and generate employment. The schemes give firms incentives for incremental sales from products manufactured in domestic units.
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