INDUSTRY
ICRA top executive sees PLI Scheme getting Rs 4-l cr investments in four years
- IBJ Bureau
- Jun 13, 2024
Production-Linked Incentive (PLI) Scheme is expected to attract investments of around Rs 4 lakh crore in the next four years and generate 2,00,000 jobs as large projects in sectors, including semiconductor, solar module and pharmaceutical intermediaries, are expected to take off, a top ICRA executive has said.
ICRA Executive Vice-President and Chief Ratings Officer K Ravichandran reveals that going ahead, private sector capital expenditure (capex) is expected to pick up in oil and gas, metals and mining, hospitals, healthcare and cement sectors.
However, taking the private sector capex to record high levels will require the government to give some tax breaks so that people have more disposable income in their hands, Mr Ravichandran adds.
“Under the PLI Scheme, we expect Rs 3-4 trillion of additional investments in the next 3-4 years. Going ahead, semiconductor, solar module and pharmaceutical intermediaries are some areas where large projects are expected to happen which can be capital- and employment-intensive. They would be generating 2 lakh jobs in different sectors,” Mr Ravichandran has said.
The PLI Scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textile, manufacturing of medical devices, automobile, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones and pharmaceutical, with an outlay of Rs 1.97 lakh crore.
PLI Schemes have witnessed over Rs 1.03 lakh crore of investment till November 2023, and employment generation of over 6,78,000.
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