Anurag Jain, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) in an interview with CNBC-TV18 on Friday, said that the government has approved a package worth Rs. 1.97 lakh crore across 14 sectors for the PLI scheme to boost ‘Make in India’.
He stated that over 600 applicants have been shortlisted in 14 sectors, and they have begun investing on the ground. “Against an estimated investment of Rs. 2.5 lakh crore, an investment worth over Rs 30,000 crore has been grounded”.
Today, an expert committee approved the first distribution under the PLI scheme to a Delhi-based firm. The company, Padget Electronics Pvt Ltd, a subsidiary of Dixon Technologies Pvt, exceeded the incremental turnover requirement and achieved the targeted investment,.
“They met all eligibility requirements and received their first incentive for incremental production in 2021-22 over the base year. It happened in the electronics ministry, and their Rs 53 crore claim was granted today,” Jain stated.
In response to the government's strategy to enforce compliance with domestic value addition rules or localization for PLI programmes, Jain commented, "we have a ‘Make in India’ purchasing preference order, which is a major boost to Make in India. We have two tiers defined: Class 1 suppliers have 50 percent value addition in India, and Class 2 suppliers have 20 percent value addition in India." If a tender is worth less than Rs. 200 crore, it must be for domestic suppliers, he stressed.
If there are no domestic suppliers, an exemption is granted by a committee led by Secretary Coordination at the Cabinet Secretariat. Capacity, on the other hand, does not exist in India for certain things, such as certain types of medical equipment.
Furthermore, the Department of Pharmaceuticals has developed a PLI scheme for medical equipment. It will be several years before actual production begins in India. He claimed that the government granted them a one-year exemption and that they will examine the situation next year and make a decision appropriately.
On plans to incentivise start-ups to stay in India rather than incorporate them abroad, Jain stated, "Start-ups have been a game changer for the country's youth. In just six years, India has risen to the third largest start-up ecosystem."
He emphasised that seed capital is particularly difficult to obtain while a start-up is in the valley of death, while also adding that “we have funds of Rs. 10,000 crore to invest into start-ups, which is managed by Small Industries Development Bank of India (SIDBI).”
“Because it does not invest directly, Rs. 10,000 crore is expected to attract Rs. 30-35,000 crore. Because SIDBI would offer 15-30 percent in one particular investment, it will multiply 3 to 4 times. We prioritise them in government procurement on the government's e-marketplace (GeM),” he said.
GeM has a startup runway, which provides several exemptions to startups. Startups are free from the turnover requirement, the prior experience requirement, and the Earnest Money Deposit (EMDs). They also have a national startup award system where they help them acquire mentors and handhold them.
"They have also just launched a mentoring programme via which VCs and unicorns coach fresh start-ups. Furthermore, the startup advisory group maintains contact with a meeting every two months," he informed.
"We continue to work on any suggestions we receive. The majority of the recommendations concern government decision-making and interministerial discussions. It's a constant process of improvement; we attempt to enhance the ecosystem depending on the inputs we receive," he continued.
On steps being taken to handhold start-ups if they’re delaying IPO plans, Jain stated that, “Seed fund scheme (SISFS) is performing well, find no concerns with it, we are on schedule. At the most recent meeting, the government asked the advisory council and other ecosystem stakeholders to provide recommendations on how to further expedite the process."
We are certain that if we use the funds quicker than slated for, we will most likely receive more funds. Startups are a key component of Vision 2047. Knowledge, innovation, and sustainability are critical to achieving the goal of 2047.
PM Modi indicated last month, when addressing a two-day National Labour Conference in Tirupati, that the country's labour ministry is formulating its vision for 2047 in Amritkal. “Flexible workplaces, work from home ecosystem and flexi work hours is the need of the future. We can employ systems like flexible workplaces to increase women's labour force participation."
Jain also noted that most of these large corporations do not require assistance since they have expanded beyond the criteria of a start-up. “The definition of a start-up is a turnover of Rs. 100 crore. A company looking at attracting unicorn status has outgrown start-ups," he said.
"Startup festivals have become a part of the calendar," he added. “There were start-up events in Helsinki, Hungary, and Dubai. The world association of investment promotion agencies (WIPA) with 105 members annually meets in Geneva. WIPA's chairman is Invest India, and we are encouraging start-ups to participate this year. WIPA is hosting a one-day entrepreneurship programme."
In response to worries about the delay in the launch of Open Network for Digital Commerce (ONDC) in several cities and the measures taken, he informed, "there is no delay in ONDC, it was planned like that, don't find any reason to worry. We planned a gentle launch, it was alpha testing 15 days back, and has reached 65 towns. Bengaluru is currently undergoing beta testing. We can't afford to make a mistake on such a significant platform." “When the product is released, it will be solid in every respect. ONDC will have proper protocols, proper agreements, grievance redressal, with trust building which is also important,” he said.
When asked about the plans to modify the Wholesale Price Index (WPI) base year, he stated that “the decision is made by a committee. The working group was divided into three sub-groups. The working group is considering the issues, and the procedure for changing the base year will be finished once the final report is received."
First Published: Sept 10, 2022 10:25 AM IST
