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Union Cabinet approves PLI Scheme for white goods with outlay of Rs 6,238 cr

Thursday, 08 Apr 2021
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The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Production Linked Incentive (PLI) Scheme for white goods (air-conditioners and led lights) with a budgetary outlay of Rs 6,238 crore.
The PLI Scheme for white goods will extend an incentive of four percent to six percent on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of air-conditioners and LED lights.
Different segments have been earmarked for different types of components separately to specifically target global investments into desired areas.
The selection of companies for the Scheme will be done so as to incentivise manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Only the assembly of finished goods will not be incentivised. 
The companies meeting the pre-qualification criteria for different target segments will be eligible to participate in the Scheme. Incentives will be open to companies making brown field or green field investments. 
The 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 the government of India will not be eligible under this scheme for the same products, but the entity may take benefits under other applicable schemes of the Centre or Schemes of state governments.
The Scheme will be implemented as a pan-India scheme and is not specific to any location, area or segment of population. 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 the 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 BIS and BEE Quality standards for sales into domestic market and applicable standards for global markets. It will also lead to investments in innovation and research and development and upgradation of technology. 
It is estimated that over the period of five years, the PLI Scheme will lead to 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 direct and indirect employment opportunities for four lakh.
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