New Delhi [India], April 7 (ANI): The union cabinet has approved the Production Linked Incentive (PLI) scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs 6,238 crore.
Addressing a press conference after the cabinet meeting, Union Minister of Commerce & Industry Piyush Goyal on Wednesday said, "The union cabinet chaired by Prime Minister Narendra Modi has approved Production Linked Incentive (PLI) scheme for manufacturing of white goods (that is, air-conditioners and LEDs) and high-frequency solar PV modules."
Goyal said the decision will add 10,000 Mega Watt capacity of integrated solar PV manufacturing plants, adding the PLI schemes will give a big push to India's manufacturing sector.
"With this decision of the union cabinet today, a total of nine out of 13 PLI schemes have been approved to date, while the rest of the four schemes are in an advanced stage. Together these schemes will give a big push to India's manufacturing sector," he said.
India can become an important manufacturing hub for the world, the minister further said.
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 brownfield 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, as per a government release.
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. 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. It will also lead to investments in innovation and research and development and up-gradation of technology.
It is estimated that over the period of five years, the PLI scheme will lead to an incremental investment of Rs 7,920 crore, incremental production worth Rs 1,68,000 crore, exports worth Rs 64,400 crore, earn direct and indirect revenues of Rs 49,300 crore and create additional four lakh direct and indirect employment opportunities. (ANI)