Ministries & firms flag IFCI 'red tape'

AN EMAIL SENT to IFCI on Monday remained unanswered, despite repeated reminders.

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Union minister of heavy industries HD Kumaraswamy noted in the minutes of a meeting on PLI schemes that IFCI's performance is 'not satisfactory'. FE has reviewed the minutes. The ministry of heavy industries is the nodal body for the PLIs for advanced chemistry cells (ACCs) and automobiles.

An official from one of the ministries handling PLIs noted on condition of anonymity that concerns about state-run IFCI's implementation performance have previously been raised by the department of financial services and the Cabinet Secretariat, in advisories issued by them. The prime minister's office is also believed to be unhappy with the progress of PLIs on various parameters, the sources indicated, but this could not be independently verified.

Under the ₹25,938 crore PLI scheme for automobiles and auto components launched in 2021, disbursements have totalled just ₹250 crore so far. Companies like Ashok Leyland, Hero MotoCorp, Hyundai Motor India, Kia India, Piaggio Vehicles, Pinnacle Mobility Solutions and Suzuki Motor Gujarat haven't made any notable progress in claiming the incentives.