Several ministries as well as firms have blamed IFCI Ltd, the project management agency (PMA) for 10 production-linked incentive (PLI) schemes for the “snail’s pace” in the release of incentives, and putting avoidable roadblocks on the smooth implementation of the schemes across many sectors.
Companies have invested over Rs 1.5 lakh crore in the three years through September 2024 under the 14 PLIs, or about 50% of the Rs 3 lakh crore committed over five years. But only Rs 11,317 crore or 6% of Rs 1.95 lakh crore incentives linked to investments, sales/turnover and value addition, have been disbursed till September 2024.
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While it appears that in several cases, the investors find the eligibility requirements for availing the benefits challenging, stakeholders have alleged that IFCI as a non-banking finance company lacks the technical expertise to evaluate the firms’ achievements. Compounding the problem is its interpretation of rules as well as changes being effected in the rules, leading to prolonged waits for the release of the funds, they added.
An email sent to IFCI on Monday remained unanswered, despite repeated reminders.
Union minister of heavy industries, HD Kumaraswamy, noted in the minutes of meeting on PLI schemes overseen by his ministry that IFCI’s performance is “not satisfactory.” FE has reviewed the minutes. The ministry of heavy industries is the nodal body for the PLIs for advanced chemistry cells (ACCs) and automobiles.
An official from one of the ministries handling PLIs noted on condition of anonymity that concerns about state-run IFCI’s implementation performance have previously been raised by the department of financial services and the Cabinet Secretariat, in advisories issued by them. The prime minister’s office is also believed to be unhappy with the progress of PLIs on various parameters, the sources indicated, but this could not be independently verified.
Under the Rs 25,938 crore PLI scheme for automobiles and auto components launched in 2021, disbursements have totalled just Rs 250 crore so far. Companies like Leyland, Hero MotoCorp, Hyundai Motor India, Kia India, Piaggio Vehicles, Pinnacle Mobility Solutions, and Suzuki Motor Gujarat haven’t made notable progress in claiming the incentives.
Similarly, no fund has been released yet under the Rs 18,100 crore scheme for ACCs,
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