Cabinet approves PLI scheme for White Goods like Air Conditioners and LED Lights

Photo by Pasha Chusovitin on Unsplash

The Union Cabinet today approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs. 6,238 crores benefitting a number of global and domestic companies including a number of MSMEs.

The primary goal of the PLI scheme is to make Indian manufacturing more globally competitive by eliminating sectoral barriers, building economies of scale, and ensuring efficiencies. It is intended to build a complete component ecosystem in India and to integrate India into global supply chains. The scheme is expected to draw foreign investments, create large-scale job opportunities and significantly boost  exports.

For a period of five years, the PLI Scheme for White Goods would include an incentive of 4% to 6% on incremental sales of goods produced in India to companies producing air conditioners and LED lights. Various segments have been designated for various types of components separately in order to precisely target global investments into desired areas. The scheme’s companies will be chosen in such a way that they will be incentivized to produce components or sub-assemblies that are not currently produced in adequate capacity in India.

Companies that meet the pre-qualification criteria for the Scheme’s various target segments will be eligible to participate. Companies making brownfield or greenfield investments would be eligible for incentives. For benefits to be claimed, thresholds of combined incremental expenditure and incremental sales of manufactured products over the base year will have to be met.

The PLI Scheme is expected to generate Rs 7,920 crores in incremental investment, Rs 1,68,000 crores in incremental production, Rs 64,400 crore in exports, Rs 49,300 crore in direct and indirect revenues, and an additional four lakh direct and indirect job opportunities over a five-year span.