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| PRODUCTION LINKED INCENTIVES (PLI) | | INCENTIVIZING AGRICULTURE | | Dr. Parveen Kumar
Agriculture sector in the country has been receiving renewed and focused attention from the last few years. This is evident from various pro farm as well as farmer centric policies and programmes of the central government. Already we are left with only one year to achieve the mission of Doubling Farmers’ Income by 2022. Under Prime Minister Kisan Samman Nidhi (PMKISAN) an amount of rupees 6000 per year in three equal instalments is credited in the account of farmers’ all over the country. This amount is meant to be a financial support more so for the marginal and small farmers for the purchase of inputs at the time of each growing season. Prime Minister Man Dhan Yojana is another pro farmer scheme which carries the provision of a monthly pension for the farming community. Many marketing reforms have also been carried out in the country. Kisan Rail, Kisan Rath have been started to bring products from areas where they are in excess to market them in areas where they are in deficit. Under the Operation Green about fifty per cent subsidy is available on air lifting of perishable products from one part of the country to another. The government has also enacted three new laws which give the farmer liberty to sell their produce outside the government designated Agricultural Produce Marketing Committees (APMCs). The Contract Farming Act has also been refined to make it more farmers friendly and to save them from being exploited by the rich landlords or industrial houses.
The government of India has come up with another ambitious scheme called the Production Linked Incentives (PLI) aimed at strengthening select Indian brand of food products for global visibility and wider acceptance in the international markets. This scheme also will increase employment opportunities of off-farm jobs, ensure remunerative prices of farm produce and higher income to farmers. Recently, the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi had given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. The ten sectors include Advance Chemistry Cell (ACC) battery, Electronic/Technology products, Automobiles and Auto Components, Pharmaceutical drugs, Telecom and Networking products, Textile Products: MMF segment and technical textiles, Food products, High efficiency Solar PV Module, White Goods (ACs and LED) and specialty steel.
In Food processing the Central Sector Scheme is known as ‘Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)’ and aims 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 with an outlay of Rs. 10900 crore. The objectives of the Scheme are to support food manufacturing entities with stipulated minimum sales and willing to make minimum stipulated investment for expansion of processing capacity and branding abroad to incentivize emergence of strong Indian brands. The objectives also include supporting creation of global food manufacturing champions, strengthening select Indian brand of food products for global visibility and wider acceptance in the international markets, increasing employment opportunities of off-farm jobs and ensuring remunerative prices of farm produce and higher income to farmers. In the agriculture sector, the growth of the processed food industry will lead to better price for farmers and reduces high levels of wastage. Specific product lines having high growth potential and capabilities to generate medium- to large-scale employment have been identified for providing support through ‘Production Linked Incentive’ scheme. The first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese. Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat and Egg Products in these segments are also covered under above component. The selected applicant will be required to undertake investment, as quoted in their Application (Subject to the prescribed minimum) in Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23. Investment made in 2020-21 also to be counted for meeting the mandated investment. The conditions of stipulated minimum sales and mandated investment will not be applicable for entities selected for making innovative/ organic products. The second component relates to support for branding and marketing abroad to incentivize emergence of strong Indian brands. For promotion of Indian Brand abroad, the scheme envisages grant to the applicant entities for in store branding, shelf space renting and marketing. The scheme has a six year time period starting from 2021-22 to 2026-27. As far as impact is concerned the implementation of 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.
The Production linked Incentive Scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed. The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet. Savings, if any, from one PLI scheme of an approved sector can be utilized to fund that of another approved sector by the Empowered Group of Secretaries. Any new sector for PLI will require fresh approval of the Cabinet. The PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain. |
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