The Department for Promotion of Industry and Internal Trade (DPIIT) on Friday notified the Production Linked Incentive (PLI) scheme for white goods - Air Conditioners, LED Lights, etc - manufacturers in India.
The PLI scheme will provide incentives to white goods manufacturers within the overall financial limits of Rs 6,238 crore over a period of 5 years from FY 2021-22 to FY 2028-29. The application window for the PLI scheme will be open from June 15 to September 15 2021.
The objective of the scheme is to create complete component ecosystems in India and the country an integral part of the global supply chains, according to the Ministry of Commerce and Industry.
After consulting with industry and other stakeholders, DPIIT has issued detailed scheme guidelines for the operation and implementation of the scheme. "The scheme is expected to attract global investments, enhance manufacturing and generate large scale employment opportunities," a government statement said.
"Eligible investment made in terms of scheme guidelines on April 1, 2021, or thereafter, shall be reckoned for considering the incentive under the Scheme," read the release.
Firms meeting the pre-qualification criteria for different target segments will be eligible to participate in the PLI 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," the statement said.
Any firm availing benefits under any other government PLI scheme is allowed to take benefits under other applicable central or state government schemes. The PLI scheme is expected to benefit a number of global and domestic companies including MSMEs. The PLI scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for AC and LED industries.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today