India receives investments of $19 billion through the Key Production Scheme, says government

The trade ministry announced on Saturday that India's main manufacturing scheme had received nearly $19 billion in investments as of November of last year. This comes a day after reports New Delhi would let the $23 billion incentive program expire due to disappointing results.

Reports indicate that the incentive scheme won't be expanded beyond 14 sectors piloted and that production deadlines won't be extended, despite requests by some participating companies.

In a press release, the trade ministry said that private firms produced goods worth $163 billion, or 90% of the targeted amount, until fiscal year 2024/25. The government, meanwhile, had paid less than $1.7 million in incentives.

Reports indicate that the payouts represent 8% of intended subsidies for the scheme.

According to the statement, projects are typically implemented over a period of two to three year and claims are generally made after the initial year of production. "Most of the projects have reached implementation and will file incentive claims when they are ready."

The statement from the trade ministry did not mention this report.

(source: Reuters)