Tag: PLI scheme

Tejas Networks expects substantial benefits from PLI scheme over the next four years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Tata Group company Tejas Networks, on April 23, reported its first profit in five quarters, at ₹147 crore.

In a post-result interaction with CNBC-TV18, Anand Athreya, MD & CEO and Arnob Roy, COO & ED of the company that designs and makes products for wireless networking talked about the company’s strategy for the future.

Roy pointed out how the company benefits from the government’s focus on producing goods within the country and the production-linked incentive (PLI) scheme.

Read the verbatim transcript of the interview below:

Q: What are you expecting to do in FY25?

Athreya: It has been a good quarter and a good year, and it has been the best quarter ever for Tejas and a profitable one too. Yes, we have strong revenue across all of our products and the pipeline is healthy. We do not give guidance on where we are going to end up, but we are insanely focused on execution and building the pipeline.

Q: Is FY25 going to be a transformational year where the topline grows in multiple?

Athreya: We have a healthy order book already in the back, and we are continuing to execute flawlessly. So, the result will take care of itself. .

Also Read | Tejas Networks shares jump 40% in two sessions to a record high post Q4 profit

Q: To understand a bit about the businesses on the international front, the growth has been at a slower pace. So, when do you see it pick up? Also, if you look at the government-led business, and the private-led business, can you give us some updates on what the growth could look like in FY25?

Athreya: We do not give guidance on growth, but all we can say is we are investing well to grow the international markets, which means we are investing in sales, partnerships, and other relationships. As we announced recently, we signed an MoU with Telecom Egypt. So, we would like to expand internationally. We intend to grow on all fronts, and we will make that investment to get there.

Q: What the impact of the PLI would be and the manufacturing of telecom equipment? What is the kind of opportunity that you see because of the replacement since so many are reducing Chinese equipment? What is the kind of opportunity that you see for your own business?

Roy: I think that is a big opportunity in terms of replacing with what we call trusted equipment, that opportunity, both not only in India, but in a lot of the foreign markets as well where those opportunities are there, and we are targeting all of that because products from India and internationally also are considered as trusted, reliable equipment kind of thing. So, yes, there is a significant opportunity for us. As regards PLI, I think PLI is a really good incentive for manufacturing investments, and we have been one of the applicants who have been approved. Our applications for FY23 as well as for FY24 have been approved and it’s for 5 years from FY23. So, for the next four years, we see a significant impact and value coming out of this PLI scheme, which is connected to not only our investments in manufacturing but also to the revenue growth that comes out of it.

For more details, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RIL, JSW Neo Energy, Lucas TVS among seven bidders for Indian govt’s ACC PLI scheme

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Ministry of Heavy Industries (MHI) has seen an enthusiastic response to the tender for rebidding in the production linked incentive (PLI) scheme for 10 GWh advanced chemistry cell (ACC) manufacturing units. The ministry said the bids amounted to seven times the manufacturing capacity that is to be awarded, according to a release.

The bids for the tender have been submitted by ACME Cleantech Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited, Anvi Power Industries Private Limited, JSW Neo Energy Limited, Reliance Industries Limited, Lucas TVS Limited, and Waaree Energies Limited.

In January, the Indian government released a request for proposal (RfP) for shortlisting and selection of bidders under the PLI scheme to set up ACC manufacturing units. The maximum budgetary outlay of ₹3,620 crore has been set for a total manufacturing capacity of 10 gigawatt hour (GWh).

Advanced chemistry cells are high-capacity and high-efficiency chemical or electrochemical energy storage cells that are used in different applications. These cells are a crucial component of lithium-ion batteries and other energy storage systems.

In May 2021, the Cabinet approved the technology-agnostic PLI scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving a manufacturing capacity of 50 GWh of ACC with an outlay of ₹18,100 crore.

The first round of the ACC PLI bidding concluded in March 2022 and three beneficiary firms were allocated a total capacity of 30 GWh, and the programme agreement with selected beneficiary firms was signed in July 2022.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ola Electric’s S1 Pro e-scooter earns PLI certification, becoming EV maker’s 2nd certified product

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Electric vehicle (EV) manufacturer Ola Electric has achieved a significant milestone with its flagship product, the S1 Pro scooter, receiving the prestigious domestic value addition (DVA) certification.

This certification is part of the production linked incentive (PLI) scheme for the automobile and auto component industry, and it recognises that the S1 Pro has met the stringent minimum localisation criteria of 50% set by the Ministry of Heavy Industries.

This achievement makes Ola Electric the only two-wheeler and pure-play EV manufacturer to receive the DVA certification for one or more products. The company had previously received the DVA certificate for the S1 Air at the Auto PLI Conclave held in January 2024.

A spokesperson for Ola Electric said, “Receiving the PLI certification for the second product affirms our vertically integrated manufacturing strength marking a significant achievement in advancing India’s EV vision. The government’s ambitious auto PLI scheme is poised to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale.”

Also Read: Hyundai Global CEO to visit India within days to firm up company’s IPO plan

The International Centre for Automotive Technology (ICAT) is one of the nodal testing agencies that grants the certification after thorough checks on the localisation standards of the components.

Under the scheme, Ola Electric is eligible for incentives for up to five consecutive financial years, starting from fiscal 2024. The incentive would range between 13-18% of the determined sales value (DSV) of the products.

In addition to this, Ola Electric was awarded a 20GWh capacity by the government under its PLI scheme for advanced chemistry cell (ACC) battery storage in March 2022.

The company is eligible to receive incentives under the cell PLI scheme over five years from the date of commissioning of the Ola gigafactory in Krishnagiri, Tamil Nadu.

Also Read: Ola Electric achieves record 35,000 registrations in February, marking a nearly 100% annual surge

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharat Tex 2024: What to expect as 110 countries to participate, 46+ MoUs, global partnerships to be inked

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India’s largest global textile event, Bharat Tex 2024, is slated to be organised in New Delhi from February 26 to 29. With over 22 lakh square feet of exhibition area spread across two venues at Bharat Mandapam and Yashobhoomi, 46 MoUs are expected to be signed during the event, including international partnerships. 

Exhibitors and buyers from over 110 countries are expected to participate in the four-day-long event, where all the value chain players in the textiles sector will be represented by 11 Export Promotion Councils, as India is aiming to integrate the fragmented value chain to reduce logistical challenges. 

India is aiming to improve manufacturing competitiveness in the textiles sector via production linked incentive (PLI) schemes and Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks. However, the gestation period under the PLI scheme for textiles is till March 2024 and production is expected to start in the next financial year, government sources indicated. Even as greater engagement is being undertaken with stakeholders in the PLI schemes to speed up implementation, suggestions are being examined by the government. 

Global textile companies including Coach, Tommy Hilfiger, Calvin Klein, Vero Moda, Coats, Toray, H&M, Gap, Target, Levi’s and Kohl’s have already confirmed their presence at the Bharat Tex 2024. Global textile bodies and business delegations from textile hubs like the US, UK, Australia, Belgium, France, Spain, Sweden, Switzerland, Germany and the Netherlands are expected to participate in the event. 

Sustainability and recycling initiatives by individual industry and clusters like Panipat, Tirupur and Surat, and a Textiles Grand Innovation Challenge to leverage the pool of untapped innovation opportunities will also be launched to identify futuristic circular solutions for scalability in India’s textiles and apparel industry.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exclusive | Mahindra Group scouts locations for cell manufacturing plant, eyes ACC PLI scheme

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Homegrown vehicle manufacturer Mahindra Group is currently considering the establishment of a cell manufacturing plant in the country. The company has shown interest in the second tender of the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, as evidenced by their participation in a pre-bid meeting.

The group is currently evaluating two to three locations in different states for the potential ACC manufacturing unit, revealed sources to CNBC-TV18. However, the final investment plans are yet to be confirmed.

“The investment plans have not yet been finalised, getting a PLI approval would be a major factor in the company’s decision to set up a cell manufacturing plant,” said a source requesting anonymity.

The same source also mentioned that Mahindra Group is exploring the possibility of setting up a cell manufacturing plant for internal use. This would be a significant move for the company, as it would support its electric mobility programme.

Also Read: Shell’s ‘beating heart’ | India to see EV infra expansion, says CEO Wael Sawan

A spokesperson for Mahindra & Mahindra (M&M), in response to CNBC-TV18’s query, stated “We are currently in the process of finalising our plans for the ACC PLI application and will announce the relevant details in due course. We have not yet applied, given the deadline date of April 2024.”

During a recent analyst call, the leadership of the Mahindra Group expressed that they were considering battery manufacturing as a future possibility. They mentioned, “We’ve said in the past that we would at some stage have a conversation with VW on localising cells in India. That hasn’t made a lot of progress yet. Doesn’t mean that’s not happening, but that’s the next stage of work that we need to get to.”

The company also stated that there is an inclination to get into battery manufacturing, but this inclination needs a thorough evaluation of all benefits.

PLI incentives are crucial for a company like Mahindra Group from a profitability and margin point of view. The company has received PLI approval for electric last-mile mobility vehicles and expects disbursements to start flowing in Q1 of FY25.

Also Read: Delhi govt issues strict guidelines for end-of-life vehicles; imposes ₹10,000 penalty for impounded 4-wheelers

M&M is likely to meet domestic value addition criteria under PLI for e-XUV400 by Q2 FY25. As the company’s SUVs are not eligible for FAME subsidies, ACC PLI incentives will further help the group in reducing EV manufacturing costs and also in meeting localisation targets.

The pre-bid meeting for the second global tender for ACC PLI saw participation from 18 companies, including Reliance, JSW, Hyundai, TVS Lucas, L&T, Amara Raja, Exide, BHEL, Nsure, Anvi Power, Godi India, ACMA, Ather, PACE Digitek, PMI Electro, Clean Electric and Neoron Energy.

Ola, Reliance, and Rajesh Exports had qualified for the first round of ACC PLI with an allotment of 30GWH capacity. The Ministry of Heavy Industries is now opening bids for 10 GWH ACC capacity out of the remaining 20 GWH capacity under the PLI scheme, which has a total outlay of Rs 18,100 crore.

Also Read: Lamborghini to launch two new models in 2024, sees promise in India

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vinati Organics targets 15-20% revenue growth for FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Vinati Organics, a company that specialises in speciality chemicals and is based in Maharashtra, had a tough third quarter this year (Q3FY24). Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 22%, and its profit after tax (PAT) decreased by 28%.

In an interview with CNBC-TV18, Vinati Saraf Mutreja, MD of Vinati Organics said the next financial year will be better with recovery in the existing products and some of the new products coming on stream. He expects revenue growth of 15-20% in FY25.

Also Read | Vinati Organics sees capacity utilisation improving in FY25, stable margins

The company’s revenue decreased from ₹516 crore in Q3FY23 to ₹448 crore in Q3FY24. Additionally, its EBITDA declined from ₹148 crore to ₹115 crore. Consequently, the operating profit margin decreased from 28.6% to 25.6%, and the profit after tax decreased from ₹107 crore to ₹77 crore.

Discussing the strategies known as “Europe-plus-one” and “China-plus-one” in the chemical industry, Saraf mentioned that India is well-positioned to fulfil the demand. She highlighted various government incentives, such as production-linked incentive (PLI) schemes, attracting interest from multinational companies (MNCs) and those based in Europe and the USA. These companies are now looking at India as an alternative supplier, making the “China-plus-one” strategy a lasting trend. Indian companies stand to benefit from this shift in the coming years.

Many countries relied heavily on China for various products, but during the COVID pandemic, when China shut down, the limitations of this dependency became clear. This realisation prompted the adoption of the “China-plus-one” strategy, emphasising the importance of diversifying the supply chain.

Also Read | China plus one strategy is playing out in pharmaceutical space, says expert

Over the past year, the Vinati stock has declined by more than 8%. The company’s market capitalisation is currently at ₹17,497.62 crore.

For the entire interview, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gensol Engineering gains nearly 8% as consortium wins PLI bid for hydrogen electrolyser manufacturing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Gensol Engineering surged nearly 8% on Monday, February 12, after the company, along with Matrix Gas and Renewables Ltd, won a bid under the Central government’s production linked incentive (PLI) scheme for the manufacturing capacity of an advanced electrolyser plant.

The project, with a manufacturing capacity of 63 MW per annum, is strategically positioned to make a substantial contribution to India’s ambitious target of producing 5 million metric tonne of green hydrogen annually by 2030, Gensol said in a stock exchange filing. This aligns with the national Green Hydrogen Mission, supported by the PLI scheme, it said.

The allocation of manufacturing capacity to Gensol and Matrix is under the Sustainable Hydrogen Innovation & Green Hydrogen Technologies (SIGHT) PLI Scheme’s Tranche-I, as part of the National Green Hydrogen Mission.

“Green hydrogen is pivotal in the world’s transition to sustainable energy, and Gensol, leveraging this opportunity, aims to foster global partnerships, technological exchange, and innovation,” Ali Imran Naqvi, CEO (EPC Business), Gensol Engineering, said.

Gensol Engineering is a leader in sustainable energy solutions and Matrix Gas and Renewables Ltd is a green hydrogen infrastructure developer and natural gas aggregator. Both firms are promoted by common promoters.

Last week, Gensol Engineering announced that it had mobilised ₹900 crore by way of issuance of convertible warrants on a preferential basis.

Elara India Opportunity Fund, Aries Opportunities Fund and Tano Investment Opportunities Fund were some of the investors who were allotted these warrants.

At 9.46 am, shares of Gensol Engineering were trading 5.66% higher at ₹1,172.95 apiece on the BSE.

Also Read: Bandhan Bank shares drop 4% after analysts cut EPS estimate, target price

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2024: Exporters, industry expect measures to increase India’s global competitiveness

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With around a week to the interim budget, industry experts from various sectors anticipate inclusive development, infrastructural expansion, digital payments, green projects, and self-reliance will continue to get a push. Exporters and industries seek more measures to increase India’s global competitiveness and are calling it the manufacturing moment. 

Bharat Dhawan, Managing Partner, Mazars in India, predicts that capital expenditure will continue to remain strong, with further allocations in the construction of roads and railways taking center stage.

Dhawan says, “High hopes are pinned towards green hydrogen in the energy sector, as well as for championing the production of EVs in automotive. The agricultural sector can also expect sops in view of current climate and inflationary pressures, and the government may take steps to cut domestic prices and boost insurance.”

Dhiraj Relli, MD & CEO, HDFC Securities reckons that the major policy reforms and announcements may get postponed to the regular budget due in June/July 2024, even as there would be some buildup of expectations ahead of the vote on account.

Relli emphasised that the capex and fiscal consolidation paths followed in the vote on account would be closely monitored given their impact on growth and interest rates. The government will have to maintain a balance between the capex and fiscal consolidation, as a higher capex could postpone the journey of the latter. 

“The government is likely to stay on the fiscal course-correction glide path in the interim budget for FY25, shunning populist spending or incentives ahead of the summer general election,” said Relli.

Some SOPs for women and youth could be announced with minimal impact on the deficit after SOPs for the poor and farmers have been announced time and again. Relli expects the capital markets to get a little excited by the vote of accounts, however, the market may wait for the regular budget and the general election outcome before getting very bullish.

Sujit Bangar, CEO at Tax Buddy, pointed out that the government has been trying to simplify tax compliance as two tax regimes have created confusion amongst taxpayers. The upcoming budget should amalgamate into one tax regime through the overall rationalisation of tax rates.

Amrit Acharya, CEO and co-founder at Zetwerk, called the present day the manufacturing moment of India, which needs to be seized with a vision of the next 25 years. 

The economy must look beyond ‘Make in India‘ and forge a self-reliant ecosystem through R&D investment, cutting-edge clean technologies, and robust skilling programs. Acharya has suggested that the government must bridge the gap between established manufacturers and new-age companies through a level playing field.

India must bridge the gap between established manufacturers and new-age companies through a level playing field to explore its full potential, Acharya added. 

Akihiro Ueda, CEO of Terra Charge, looked optimistic that the government will continue to support the EV ecosystem through favorable policies, subsidies, and infrastructure development. This will also prove significant for India’s environmental goals. The EV industry has received a significant boost through initiatives like the production-linked incentives (PLI) scheme.

Akash Sinha, CEO and Co-Founder, Cashfree Payments, stressed that the government should push for initiatives that aim to focus on increasing penetration of digital payments in regions in tier-2 cities and beyond.

“There is a call for the implementation of a standardized KYC framework across all financial services, aiming to enhance efficiency and promote financial inclusion in a secure way. Overall, the budget should also announce some provisions to ease the financial burden on fintechs and provide tax-saving benefits to startups in the sector,” said Sinha.

MobiKwik’s co-founder and CEO, Bipin Preet Singh, suggests that we could foresee incentives for fintechs that provide lending solutions beyond Tier 2 and Tier 3 cities.

Singh believes that the upcoming Union Budget will further drive financial inclusion by increasing the credit corpus for MSMEs, which includes extending support to microfinance institutions (MFIs) and small finance banks (SFBs).

“We expect the budget to provide incentives that encourage fintechs to drive further innovations in other aspects of banking like credit, investments, savings, and advisory. We also expect digital lending, especially  small-ticket loans, to grow significantly with the proper checks and balances in place to protect borrowers,” said Singh.

Vikram Agarwal, Managing Director, Greendot Health Foods Pvt. Ltd, the company that owns the popular Nachos brand, has requested the government allocate funds for export incentive schemes in the food sector, coupled with subsidies to facilitate overseas participation in major food shows.

Apparel Export Industry 

The Apparel Export Promotion Council (AEPC) has pitched to enhance the competitiveness of RMG exports in India. Mithileshwar Thakur, Secretary General, AEPC, said, “India is on the cusp of being the fastest-growing economy, and trimmings and embellishments under the Import of Goods at Concessional Rates of Duty Rules (IGCR Rules) will help the sector.”

The operations involved in the garment export trade require various kinds of quality trimmings and embellishments (tags, labels, stickers, belts, buttons, linings, inter-linings, etc.) to ensure the desired functionality and aesthetics of garments in the global market. In order to maintain their brand image, foreign buyers insist on maintaining consistency and quality and avoiding the use of counterfeits. APEC has also requested duty exemption for the following items: draw cord, elastic band or tape, metal tabor stopper or clip, tape, velcro tape, leather badge, die set, D ring, etc.

Also, the sector should be allowed a minimum waste at 10% under the IGCR Rules for import of trimmings and accessories by issuing an appropriate notification. “Apart from this, an increase in the rates to 5% for All Exporters under the Interest Equalization Scheme will boost the sector. The industry has requested the government to consider tax concessions to apparel manufacturers adopting ESG and other international quality standards and compliances,” Thakur added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Production-linked incentives for advanced chemistry cell manufacturing to be open for re-bids

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a move to bolster domestic manufacturing capabilities in the rapidly evolving field of advanced chemistry cells (ACCs), the Ministry of Heavy Industries (MHI) announced the re-bidding of production linked incentives (PLI) on Wednesday, January 24, 2024.

The PLI scheme, specifically tailored for 10 GWh ACC manufacturing, opens doors for prospective applicants to participate in the bidding process. This presents an opportunity for companies to establish a domestic manufacturing facility, thereby qualifying for incentives under the PLI ACC scheme.

The bidding process is set to unfold online, ensuring transparency through a two-stage mechanism under the quality and cost-based selection (QCBS) on the CPP portal. Tender documents for interested parties have been made available from January 24.

To address potential queries and provide additional clarity, a pre-bid conference is scheduled for February 12. The bid due date has been set for April 22, 2024, and bidders will have the opportunity to submit their proposals until April 23, 2024.

ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.

These have major applications in electric vehicles, maintaining grid stability, solar rooftops, consumer electronics, etc. With India’s commitment towards renewable energy and achieving net zero by 2070, energy storage is expected to play a crucial role in the overall energy ecosystem.

In May 2021, the Cabinet approved the technology-agnostic PLI scheme on the ‘National Programme on Advanced Chemistry Cell Battery Storage’ for achieving a manufacturing capacity of 50 gigawatt hours (GWh) of ACC with an outlay of ₹18,100 crore.

The first round of the ACC PLI bidding was concluded in March 2022, and three companies were allocated a total capacity of 30 gigawatt hours (GWh), and the programme agreement with selected companies was signed in July 2022.

Further, the Ministry of Heavy Industries and the Government of India have released a request for the proposal for shortlisting and selection of bidders under the PLI scheme for setting up of battery manufacturing units with a total manufacturing capacity of 10 giga watt hour (GWh) with a maximum budgetary outlay of ₹3,620 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2024: Healthcare and pharma sectors expect tax incentives and PLI incentives 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With less than 10 days left until the announcement of the interim budget, the pharma and healthcare sectors have lots of hope from the government. The sector expects more tax breaks, a further boost to the PLI scheme, more benefits for R&D and AI and a lot more.

Anil Matai, Director General, Organisation of Pharmaceutical Producers of India (OPPI), reckons that the concessional tax rates under Section 115BAB of the Income Tax Act, 1961, should be extended to companies engaged in R&D of pharma as well, beyond those in the manufacturing sector. 

Matai said, “We also hope for the elimination of import duties on life-saving drugs, recognising that individuals should not bear substantial taxes during health crises. Simultaneously, we call for increased incentives for innovation and to attract foreign investment in advanced research.”

Nikhil Chopra, CEO and whole-time director of JB Pharma, anticipates the allocation of funds towards enhancing the pharmaceutical supply chain and distribution infrastructure, which should be coupled with the integration of the latest digital technologies to ensure a streamlined and technologically advanced system.

Speaking about India’s goal of promoting indigenous manufacturing and reducing dependency on external sources, Chopra says, “Through the incorporation of digital advancements, the efficiency and transparency of the supply chain can be significantly improved. In our quest for self-sufficiency and reduced reliance on imports, implementing well-crafted measures to streamline the production-linked incentive (PLI) scheme becomes a pivotal catalyst. The government should consider incentivising domestic API manufacturers.”

Highlighting the deaths of 58 lakh Indians to heart and lung diseases, stroke, cancer and diabetes, Gautam Khanna, CEO of PD Hinduja Hospital and Medical Research Centre, says, “The upcoming budget should focus on increasing healthcare expenditure, aiming for 2.5 to 3.5% of the total GDP, to move closer towards universal health coverage.”

Khanna further suggested incentivising health insurance and preventive healthcare will play a pivotal role in inching towards universal health coverage. To make the Indian healthcare system more accessible and affordable, ecosystems to aid the development of innovative digital healthcare delivery models and tax incentives on technology investments should be provided by the government, suggested Khanna.

Insurance Samadhan’s Co-founder and Insurance Head, Shailesh Kumar suggests initiatives toward five focus areas to help increase insurance penetration: financial literacy, encouraging health competition in the insurance industry, simplifying complex insurance terminology, increasing the sum assured and simplifying the tax implications of insurance.

Kumar reckons, “I believe that standardisation of health insurance and similar favourable announcements could be on the cards as there’s a rising interest in healthcare planning.”

Ankur Gigras, CEO and Co-founder of HexaHealth, a healthtech platform, stresses the need for a comprehensive approach to healthcare spending in the interim budget. He added that the government must prioritise equitable supply and utilisation, focusing on marginalised groups, outpatient care and dynamic cost coverage. 

“Moreover, emphasis should be placed on innovative medical technologies like artificial intelligence, which may improve the quality of life for patients during operations, speed up insurance claims for required procedures, and raise the efficacy of healthcare delivery overall,” Gigras said further.

Anand Roy, MD and CEO of Star Health and Allied Insurance Co. Ltd. stresses the need for a reduction of GST on retail health insurance products from the existing 18% and says, “This reduction in GST rate would not only enhance the affordability of health insurance for the general public but also contribute to increasing insurance penetration and accessibility, particularly in tier-II, tier-III cities, and rural markets.”

Pristyn Care’s Co-founder Dr Garima Sawhney emphasised the expectations of female entrepreneurs for extra incentives and PLI schemes along with interest-free loans to support them. She also expects the government to provide low-cost funding to early-age start-ups founded by women to position India as an innovation-based economy.

A viable women-centric industrial policy is the need of the hour to get prominence for women’s entrepreneurship development. The startup sector would expect the budget for 2024 to continue with stability in the policies,” says Dr Garima Sawhney.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow