New Delhi | Jagran Business Desk: The Centre has approved the production-linked incentive (PLI) schemes for the textiles sector with an aim to boost domestic manufacturing and exports. Under the scheme incentives worth Rs 10,683 crores will be provided to the sector over 5 years. This comes in line with the impact of COVID-19 pandemic on the economy, production and job creation. The government has also raised the minimum support price (MSP) on Rabi crops including wheat, barley, gram, mustard and others amid the farmers protest against the three farm laws.
Here's all you need to know about the new PLI schemes:
What is PLI?
Production Linked Incentive (PLI) is a scheme introduced by the government of India as a part of its 2021-22 Budget. The scheme involves benefits across 13 key sectors with a sum of Rs 1.97 lakh crore. It is designed to create national manufacturing champions and generate employment opportunities for the country’s youth. In simpler words, PLI is a way to reward increased production in a specified sector, and has ramifications for economic growth and job creation. Such schemes also attract foreign companies, encouraging them to produce in India. The scheme is said to be Narendra Modi government’s push for Atmanirbhar Bharat.
Which sectors have it?
The first three PLI schemes were approved in March, 2020 for- mobile phone and electronic manufacturing, drug intermediaries and active pharmaceutical ingredients (APIs). Another six were approved by November last year in the areas of electronic and tech products, pharmaceuticals drugs, telecom and networking products, food products, and white goods. Now, the government of India has introduced PLI in textiles, Automobiles and Auto Components, advanced batteries, and specialty steel sectors.
How does it work?
PIL scheme provides incentives to companies on incremental sales over a base year for production inside the country. It gives incentives for upscaling of manufacturing capacities.
What is MSP? What is the increased MSP for Rabi Crops?
MSP is the rate at which the government buys grain from farmers. The CCEA has approved an increase in MSPs for six rabi crops for the 2021-22 crop year (July-June) and 2022-23 marketing season.
The MSP for wheat has been increased by 2 per cent to Rs 2,015 per 100 kg, while the MSP for mustard seed has been raised by Rs 400 to Rs 5,050 per quintal for the current crop year. The support price of barley has been hiked by Rs 35 to Rs 1,635 per quintal for the 2021-22 crop year from Rs 1,600 per quintal in the previous year.
In the case of pulses, the MSP for gram has been increased by Rs 130 to Rs 5,230 per quintal from Rs 5,100 per quintal and lentil (masur) has been hiked by Rs 400 to Rs 5,500 per quintal from Rs 5,100 per quintal.
Similarly, the government has increased the MSP for mustard seed by Rs 400 to Rs 5,050 per quintal for the 2021-22 crop year from Rs 4,650 per quintal in the previous year. The MSP for safflower has been raised by Rs 114 to Rs 5,441 per quintal from Rs 5,327 per quintal.
(With inputs from agencies)
Posted By: Sugandha Jha