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DAILY NEWS ANALYSIS

  • 18 August, 2020

  • 5 Min Read

Plug and play Business model

Plug and play Business model

  • The government intends to promote scheme of ‘plug and play’ for further fast-tracking investment proposals especially for projects having substantial foreign investment.

About plug and play

  • ‘Plug and play’ concept normally refers to ready facilities in terms of building, power-water-sewage connectivity, road connectivity, beside other basic things including clearances in hand required to start the industry.
  • This concept gained ground in 2015 when the then Finance Minister Arun Jaitley said in his Budget speech that the government proposes to set up five new Ultra Mega Power Projects, each of 4000 MWs in the plug-and-play mode.

Need of the hour:

  • This approach is being considered at a time when many companies are moving out of China and looking for alternatives.
  • The government feels with corporate tax rate at 15 per cent for newer manufacturing units along with good number of skilled workforce and availability of land resources in various parts of the country, make India an attractive destination.
  • Also, that there is need of more investments to restart pandemic lockdown-affected industry .

Source: TH


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