The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs6,238cr.
According to the Cabinet, the PLI Scheme for White Goods shall extend an incentive of 4% to 6% on incremental sales of goods manufactured in India for five years to companies engaged in manufacturing Air Conditioners and LED Lights.
The Cabinet said that different segments have been earmarked for different types of components separately to specifically target global investments into desired areas. Selection of companies for the Scheme shall be done to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods shall not be incentivized.
Companies meeting the pre-qualification criteria for different target segments will be eligible to participate in the Scheme. Incentives shall be open to companies making brownfield or greenfield Investments. Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met for claiming incentives.
Further, the Cabinet stated that the Scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for AC and LED industries, develop complete component eco-systems in India and create global champions manufacturing in India. They will have to meet the compulsory BIS and BEE Quality standards for sales into the domestic market and applicable standards for global markets. It will also lead to investments in innovation and research and development and up-gradation of technology.
The Cabinet announced that it is estimated that over five years, the PLI Scheme will lead to an incremental investment of Rs7,920cr, incremental Production worth Rs1,68,000cr, exports worth Rs64,400cr, earn direct and indirect revenues of Rs49,300cr and create additional four lakh direct and indirect employment opportunities.
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