The government of India has recently sanctioned a production-linked incentive scheme (PLI) for air-conditioner and LED light sectors with an outlay of ₹6,238 crores.
Addressing a press conference along with Union Minister Prakash Javadekar on Cabinet decisions, Commerce and Industry Minister Piyush Goyal said that the approval of the scheme will give a boost to domestic manufacturing.
“With this decision of the Union Cabinet today, a total of 9 out of 13 PLI schemes have been approved to date, while the rest of the 4 schemes are in an advanced stage. Together these schemes will give a big push to India’s manufacturing sector,” said Goyal.
The proposal was approved in the weekly Union Cabinet meeting, which was chaired by Prime Minister Narendra Modi.
The PLI scheme is aimed at boosting domestic manufacturing in the country. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains.
The PLI scheme for white goods will extend an incentive of 4-6% on incremental sales of goods manufactured in India for five years to companies engaged in manufacturing of ACs and LED lights, the government announced in a statement.
The scheme will be implemented across India and won’t be specific to any location, area, or segment of the population, the statement further said.
The scheme is expected to attract global investments, generate large-scale employment opportunities and enhance exports substantially.
The government said that in five years, the PLI scheme will lead to an incremental investment of Rs 7,920 crores, incremental production worth Rs 1,68,000 crore, exports worth Rs 64,400 crores, earn direct and indirect revenues of Rs 49,300 crores and create additional four lakh direct and indirect employment opportunities.