Question

Q. Consider the following statements with reference to the PLI scheme:

Which of the statements given above is/are correct?

• A. 1 and 2 only
• B. 1 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 1 only

Explanation:

• Statement 1 is correct: Production Linked Incentive or PLI scheme is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units. The scheme invites foreign companies to set up units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment, and cut down the country’s reliance on imports from other countries.
• Statement 2 is incorrect: The first sector which the PLI scheme had targeted was the Large Scale Electronics Manufacturing in April 2020, and by the end of the year (November 2020), 10 more sectors including food processing, telecom, electronics, textiles, speciality steel, automobiles and auto components, solar photovoltaic modules and white goods such as air conditioners and LEDs were also expanded under the PLI scheme. In the Union Budget 2021, Finance Minister mentioned the inclusion of thirteen more sectors under the PLI Scheme for a period of five years and Rs. 1.97 lakh crores have been allocated for this scheme from Financial Year 2022
• Statement 3 is incorrect: The PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed. Hence, for example, the Ministry of Electronics and Information Technology will implement the PLI scheme in Large Scale Electronics Manufacturing. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.