MeitY Responds to IT Panel’s Concerns Over Unspent Funds in PLI and Chip Initiatives

The Parliamentary Standing Committee on Information Technology has expressed concern about the Ministry of Electronics and Information Technology (MeitY) not fully utilising its allocated funds for the 2023–24 financial year. According to the committee’s 14th report tabled in Parliament on July 25, MeitY left Rs 1,574.13 crore of its revised budget unspent, with nearly 70% of this amount — Rs 1,097.73 crore — belonging to two major schemes: the Production Linked Incentive (PLI) scheme and the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem.

The committee mentioned in its report that out of total allocation of Rs. 1,503.36 crore under semiconductor scheme the ministry spent only Rs. 681.11 crore, resulting in around 55% of the funds remaining unused. The panel described this level of fund surrender as a sign of poor planning by the ministry.

Responding to the criticism, MeitY clarified that fund disbursement for both schemes is linked to the performance of private sector participants. It explained that expenditure depends on the achievements of industrial players, and hence, full utilisation of funds is often beyond the ministry’s direct control. The ministry further said that it has begun lowering budget estimates from companies at the initial stages and is conducting weekly reviews of scheme expenditures.

However, the committee rejected this explanation, stating that it is MeitY’s responsibility to actively monitor and facilitate these schemes. It emphasized that the ministry cannot shift the burden of execution entirely onto private companies and asked for records of the last five Group Coordinators’ meetings along with measures taken to resolve the issue.

Additionally, the report reviewed progress on the Digital Personal Data Protection (DPDP) Act, 2023. Responding to this, MeitY informed that a beta version of the Digital Office under the DPDP initiative has been developed, and so far, 20 awareness sessions and nine consultation workshops on the draft DPDP Rules, 2025, have been held. The committee noted the ongoing developments and asked to be kept updated on future progress.

Source: Moneycontrol