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The Department for Promotion of Industry and Internal Trade (DPIIT) on Friday released guidelines for the ₹6,238 crore-Production Linked Scheme (PLI) for white goods sector for component makers of air-conditioners and LED lights after consultations with stakeholders. It said the application window for the scheme will be open from June 15-September 15.
“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,” DPIIT said in a statement.
The scheme aims to offer benefits in the range of 4 -6 per cent on net incremental sales of eligible products (AC and LED lamp components) over the sale of eligible products in the base year to selected applicants The investments have been specified under “Large category” and “Normal category”
The government expects a number of global and domestic companies including MSMEs to get benefits from this scheme.
“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,” DPIIT added.
“Mere assembly of finished goods shall not be incentivised. Selection of companies for the Scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Applicants proposing to manufacture more items deeper into the value chain of eligible products shall have higher priority for selection. Within a target segment, ‘Large Investment’ shall have a higher priority over ‘Normal Investment’,” the guidelines stated.
The guidelines have specified eligibility criteria for applicants in terms of minimum commitments for investments in plant and machinery (gross block) , revenues and net worth under the large investments and normal investments categories.
Anand Ramanathan, Partner, Deloitte India that the PLI scheme, “will help drive greater levels of investments and localization of manufacturing in segments such as air conditioners and LED lights. The initiative will also help mature the supply chain ecosystem and improve the attractiveness of India from an exports standpoint.”
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