New Delhi: The government proposes to incentivise operations of domestic equipment manufacturers such as BHEL, L&T, and Bharat Forge that results in manufacture of equipment that is currently being imported, particularly from countries such as China.Official sources said that a productivity-linked incentive ( PLI ) scheme involving phased manufacturing programme is being finalised for certain equipment used by the power sector. Also, the company would scale up production of cold rolled grain oriented silicon (CRGO) steel, which is also largely imported from countries such as China, Korea and Japan. Of the balance, local alternatives are available for 102 items, leaving 101 items that need to be made locally. The existing PLI for mobile manufacturing offers incentives to the tune of 4-6 per cent for incremental investment and sales over a period of five years to companies. Similar schemes could be worked out for new sectors but the quantum of benefit would depend on capital intensity of an industry.

Source: Economic Times August 19, 2020 08:55 UTC