Archive · 22 Jan 2026
Davos 2026: Criticism of PLI Scheme's L-1 Mentality
At the Davos 2026 event, Jayadev Galla, the co-founder of Amara Raja Group, talked about problems with India's PLI scheme.
He said that the scheme often picks the cheapest bid, which leads to poor quality and unmet promises.
He suggested that the government should instead look at the capabilities and long-term benefits of companies.
Dr. Bharat Kaushal from Hitachi India also mentioned that some sectors are starting to value quality over price.
Galla also said that India needs bigger reforms and better policies for solar power to succeed.
He believes consumers should be able to buy and sell power easily.
Jayadev Galla criticized the L-1 procurement strategy in India's PLI scheme for leading to poor quality and unmet commitments.
He suggested moving to qualitative bidding, considering capabilities and life cycle costs.
Dr. Bharat Kaushal noted a shift towards valuing quality in sectors like capital goods, power, and rail.
Galla emphasized the need for 'big R' reforms and better policies for PM Modi's Surya Ghar Yojana to succeed.
He proposed enabling gross metering, Time of Day (ToD) tariffs, and digital marketplaces for power trading.
- Who
- Jayadev Galla, co-founder of Amara Raja Group, and Dr. Bharat Kaushal, MD of Hitachi India
- What
- Criticism of the L-1 procurement strategy in India's PLI scheme and a call for qualitative bidding
- When
- Davos 2026
- Where
- India Showcase at Davos 2026
- Why
- To highlight the failures of the L-1 strategy and propose a more balanced approach
- Event
- Davos 2026
- Speaker
- Jayadev Galla, Amara Raja co-founder
- Scheme
- Production-Linked Incentive (PLI)
- Strategy
- L-1 (Lowest Bidder)
- Issue
- Unrealistic commitments and unspent funds
- Proposed Solution
- Qualitative bidding and life cycle cost evaluation
- Other Speaker
- Dr. Bharat Kaushal, Hitachi India MD
- Sectors Mentioned
- Capital goods, power, rail, infra