About the scheme
- In April last year, the central government had for the first time notified the Production Linked Incentive (PLI) scheme for mobile phones and allied component manufacturing.
- As a part of the scheme, companies which set up new mobile and specified equipment manufacturing units or expanded their present units would get incentives of 4 to 6 per cent, after they achieve their investment and production value target for each year. These incentives will be offered for a period of 5 years.
- In November, the PLI scheme was expanded to include 12 more sectors such as automobile and automobile components, pharmaceutical drugs, textile products, food products, high efficiency solar photo-voltaic modules, white goods such as air conditioners and LED bulbs, and speciality steel products.
- Finance Minister Nirmala Sitharaman had in her Budget for 2021-22 said the total outlay on PLI schemes in these 13 sectors over the next five years would be Rs 1.97 lakh crore.
Why in News?
- The cabinet has approved an investment of Rs 10,900 crore in the food processing industry under the Production Linked Incentive scheme.
- The objective of Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets.
- The Scheme will be implemented over a six year period from 2021-22 to 2026-27.
- The scheme would facilitate expansion of processing capacity to generate processed food output of Rs 33,494 crore and create employment for nearly 2.5 lakh persons by the year 2026-27.