Prime Minister Narendra Modi's Cabinet approved two production-linked incentive schemes worth Rs 10,738 crore for air conditioners, LED lights, and high-efficiency solar PV modules. The Production Linked Incentive (PLI) Scheme for White Goods such as Air Conditioners and LED Lights with a budgetary outlay of Rs. 6,238 crore, taking another important step towards the vision of 'Atmanirbhar Bharat.'
The PLI Scheme is expected to generate incremental investment of Rs. 7,920 crore, incremental production of Rs. 1,68,000 crore, exports of Rs 64,400 crore, earn direct and indirect revenues of Rs 49,300 crore and create an additional four lakh direct and indirect job opportunities over a five-year period.
The Scheme is expected to help the AC and LED industries to achieve much higher growth rates than currently exist, develop complete component eco-systems in India, and create global champions manufacturing in India.
Why PLI Scheme?
The scheme was created by the government to provide incentives for incremental sales of products made in domestic units, as well as to reduce import costs. The scheme was created by the government to provide incentives for incremental sales of products made in domestic units, as well as to reduce import costs. The PLI scheme's main goal is to make Indian manufacturing more globally competitive by removing sectoral barriers, establishing economies of scale, and ensuring efficiencies. Its goal is to establish a complete component ecosystem in India and make the country a vital part of global supply chains.
PLI Scheme for White Goods
Companies that manufacture air conditioners and LED lights will be eligible for a 4% to 6% incentive on incremental sales of goods manufactured in India under the PLI Scheme for White Goods, which will last for five years. Different segments have been set aside for various types of components in order to target global investments in specific areas.
Companies that meet the pre-qualification criteria for the Scheme's various target segments will be eligible to participate.
Companies making brownfield or greenfield investments will be eligible for incentives. For claiming incentives, thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met.
The scheme will be implemented across India and will not be limited to any particular location, area, or population segment. The Scheme is likely to benefit a number of global and domestic companies, including a number of MSMEs.