Guidelines For PLI Around ACs and LEDs Announced

0
323

The PLI Scheme shall extend an incentive four to six per cent on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments

Department for Promotion of Industry and Internal Trade(DPIIT), Ministry of Commerce and Industry, Government of India todaynotified theProduction Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) manufacturers in India. The objective of the scheme is to create complete component ecosystem in India and make India an integral part of the global supply chains.

With due consultations with industry and other stakeholders, DPIIT issued detailed Scheme Guidelinesfor effective operation and smooth implementation of the Scheme. The Scheme is expected to attract global investments, enhance manufacturing and generate large scale employment opportunities.

The PLI Scheme will be implemented within the overall financial limits of Rs. 6,238 Crores (Six thousand two hundred thirty-eight Crore) over a period of 5 years during FY 2021-22 to FY 2028-29.Eligible Investment made in terms of Scheme guidelines, on April 1, 2021 or thereafter, shall be reckoned for considering the incentive under the Scheme.

Incentive of four to six per cent

The PLI Scheme shall extend an incentive four to six per cent on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year and one year of gestation period.

FY 2019-20, as per the scheme, shall be treated as the base year for computation of cumulative incremental investment and
incremental sales (net of taxes) of manufactured goods (as distinct from traded goods) as well as for prequalification criteria.

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.

An entity availing benefits under any other PLI Scheme of Govt. India may take benefits under other applicable schemes of Govt. of India or schemes of State governments.

A number of global and domestic companies, including a number of MSMEs are likely to benefit from the Scheme.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.

The application window for the Scheme shall be open from 15th June 2021 to 15th September, 2021.

Read the complete notification here.

SHARE YOUR THOUGHTS & COMMENTS

Please enter your comment!
Please enter your name here

Are you human? *