Investment under the production linked incentive (PLI) scheme is expected to provide a significant 40 percent increase to employment generation to 1.2 million, from 0.85 million jobs created at present, Commerce and Industry Minister Piyush Goyal said at an interaction with CEOs of PLI schemes on September 29.

The minister noted that production is also likely to cross Rs 11 lakh crore compared with Rs 9 lakh crore already achieved.

“Make in India and PLI both have an umbilical cord, which is impossible to separate,” Goyal noted.

After the interaction with 140 industry representatives under PLI scheme, Goyal said that the issue of government procurement will also be reviewed in certain sectors.

“In government procurement, a few amendments will be required sectorally, where domestic value addition is less but gradually increased. I have asked my officials if we could have a roadmap so that they can transition to become Class I and Class II suppliers.

A Class I supplier is defined by the Department for Promotion of Industry and Internal Trade (DPIIT) as an entity whose local content is at least 50 percent. Class II is a supplier with over 20 percent but less than 50 percent local content.

Goyal noted that the ministry will also look at providing support for entities that are producing goods for the first time in India.

“We have asked sectors to get back to us in details, so that we can take some technical expertise and advise, see if it can be made eligible for supply without prior experience,” he added.

Prior experience is one of the conditions of procurement by the government as well.

The government currently runs PLI schemes across 14 sectors, where 1,300 units are operational.

Moneycontrol had earlier reported that there was no plan yet to extend the scheme beyond its current scope.

The minister also noted that the government was in the process of getting a second iteration of Jan Vishwas Bill to further ease compliance burden.

“We are in process of preparing Jan Vishwas Bill No 2 to come up with newer liberalised provisions,” he noted.

The minister also made a call for more local procurement.

“I would urge all of you to go for a made in India product, even if it's a bit expensive,” he pointed out.