{"id":115262,"date":"2021-06-28T19:07:59","date_gmt":"2021-06-28T13:37:59","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=115262"},"modified":"2021-06-29T11:49:04","modified_gmt":"2021-06-29T06:19:04","slug":"inadequate-planning-on-pli-schemes","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/inadequate-planning-on-pli-schemes\/","title":{"rendered":"Inadequate planning on PLI Schemes"},"content":{"rendered":"\n<p><b><span data-contrast=\"none\">Synopsis:<\/span><\/b><span data-contrast=\"none\">\u00a0Production-linked incentive (PLI) schemes are gathering momentum.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">Introduction\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">25 companies, including Nokia and Dixon Technologies, have registered for the telecom hardware PLI scheme. It is worth over Rs 12,000 crore.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">PLI schemes for telecom hardware, steel sector, advanced chemistry cell batteries etc. Have been notified. However, sufficient thought or a strategic planning is missing in this expansion of PLI schemes.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What are the issues with PLI Schemes?<\/span><\/b><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"92\" data-aria-level=\"1\"><span data-contrast=\"none\">It is just like an old-style industrial policy. Incentives will be provided to uncompetitive units in order to ramp up production for the domestic market.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"93\" data-aria-level=\"1\"><span data-contrast=\"none\">It will create institutional links between industrialists and the bureaucracy. These links will be very difficult to manage in the long run.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"94\" data-aria-level=\"1\"><span data-contrast=\"none\">Implementing the scheme across multiple sectors is useless. It will not be able to overcome the existing barriers to exports and will put additional burden on taxpayers.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"14\" aria-setsize=\"-1\" data-aria-posinset=\"95\" data-aria-level=\"1\"><span data-contrast=\"none\">These schemes will only be useful for sector, where a foreign and domestic market exists and hurdles like the cost of purchasing intellectual property and other start-up costs exists. lithium-ion batteries sector is one such sector.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<h5><b><span data-contrast=\"none\">Suggestions\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"13\" aria-setsize=\"-1\" data-aria-posinset=\"96\" data-aria-level=\"1\"><span data-contrast=\"none\">\u201cInstitutional mechanism\u201d to manage obstacles in PLI scheme implementation.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"13\" aria-setsize=\"-1\" data-aria-posinset=\"97\" data-aria-level=\"1\"><span data-contrast=\"none\">Providing \u201chand-holding\u201d support for firms.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"13\" aria-setsize=\"-1\" data-aria-posinset=\"98\" data-aria-level=\"1\"><span data-contrast=\"none\">PLI scheme should be a sector or industry specific scheme. For example,\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"13\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"2\"><span data-contrast=\"none\">if it aims at generating factory jobs, it should be concentrated in labor-intensive sectors.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"13\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"2\"><span data-contrast=\"none\">If it aims to reduce strategic independence on China, then it should focus on diversifying specific China-focused supply chains alongside a China-focused trade policy.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\"> <b>Source:\u00a0<\/b><a href=\"https:\/\/www.livemint.com\/opinion\/columns\/our-record-forex-reserves-must-be-seen-in-the-right-perspective-11624808903147.html\"><b>Livemint<\/b><\/a>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0Production-linked incentive (PLI) schemes are gathering momentum.\u00a0 Introduction\u00a0\u00a0 25 companies, including Nokia and Dixon Technologies, have registered for the telecom hardware PLI scheme. It is worth over Rs 12,000 crore.\u00a0\u00a0 PLI schemes for telecom hardware, steel sector, advanced chemistry cell batteries etc. Have been notified. However, sufficient thought or a strategic planning is missing in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/inadequate-planning-on-pli-schemes\/\">Continue reading <span class=\"screen-reader-text\">Inadequate planning on PLI Schemes<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[],"class_list":["post-115262","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1702839109},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/115262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=115262"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/115262\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=115262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=115262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=115262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}