The Union Cabinet, chaired by PM Modi approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) on Wednesday. The budget for the PLI scheme is Rs. 6,238 Crore and it will be dispatched over five years for these products to be manufactured in India.
The scheme is designed to create an ecosystem of complete elements in India and establish India as an integral part of the global supply chain. The scheme aims to attract global investments which will lead to the generation of large-scale employment opportunities and substantial enhancement of exports.
It also aims to provide additional incentives ranging from 4% to 6% on additional sales of Indian manufactured goods for five years to the companies which are engaged in manufacturing Air Conditioners and LED Lights.
Various segments have been designated for various components separately to attract global investments into the targeted areas. Companies fulfilling the pre-qualification criteria for different target segments will be eligible to participate in the Scheme.
It is to be kept in mind that any entity availing benefit from the govt.’s other PLI scheme won’t be eligible for similar products under this scheme. They can continue availing benefits under other schemes of various states and Central government.
The scheme is expected to accelerate the growth rate of the AC and the L.E.D industries and the companies will have to meet the compulsory BIS and BEE Quality standards for sales into the domestic market and its equivalent for global markets.
The scheme aims to attract an added investment worth Rs. 7,920 Crore, incremental Production worth Rs. 1,68,000 Crore and exports worth Rs 64,400 Crore. It aims to earn direct and indirect profits worth Rs 49,300 Crore and even create additional four lakh direct and indirect employment opportunities.