Air-conditioners (AC) and LED lights manufacturing companies will receive an incentive of 4 to 6 per cent on incremental sales of goods manufactured in India for a period of five years
The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for white goods (air conditioners and LED lights) with a budget of Rs 6,238 crore.
An official statement read, “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 brown field or green field investments. Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met for claiming incentives.”
Boost for AC and LED industry
Air-conditioners (AC) and LED lights manufacturing companies will receive an incentive of 4 to 6 per cent on incremental sales of goods manufactured in India for a period of five years. The statement added that mere assembly of finished goods shall not be incentivized.
The scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for the air conditioners and LED industries, along with developing complete component ecosystems in India and creating global champions manufacturing in India. They will have to meet the compulsory Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency (BEE) quality standards for sales into the domestic market and applicable standards for global markets, the statement further said.
Vision to become ‘Atmanirbhar’
This move comes as a big push to the government’s vision of making the country self-reliant.
“The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains,” read the statement.
Under the PLI scheme, the government expects to ensue an Rs. 7,920 crore worth of incremental investment, incremental production of Rs. 1,68,000 crore, exports worth Rs 64,400 crore, and also earn direct and indirect revenues of Rs 49,300 crore, along with creating 4 lakh employment opportunities.