With it objective to make India an ‘Atmanirbhar Bharat’, another initiative was approved by the Central Government in the form of Production Linked Incentive (‘PLI’) Scheme for White Goods (Air Conditioner and LED Lights) with a budgetary outlay of 6,238 crore.
Period of implementation –
The scheme will be implemented over the period FY 2021-22 to FY 2028-29.
Primary Objective –
1. Make Indian manufacturing globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
2. Make India an integral part of global supply chains.
3. To attract global investments.
4. Generate large scale employment opportunities.
5. Enhance exports substantially.
Targeted segments under the scheme –
1. Air conditioner –
2. LED Lights –
Incentive quantum –
Incentive of 4% – 6% on incremental sales (net of taxes) over base year for a 5 year period subsequent to base year with 1 year of gestation period.
Actual disbursement of PLI for a particular year will be in subsequent year.
Eligibility for the scheme –
1. 1 company can apply for only 1 target segment. Group companies can apply for different target segments.
2. To be eligible for incentive, the applicant has to fulfill both criteria’s –
1st year of investment is FY 2021-22 and 1st year of incremental sale is FY 2022-23.
The target segment wise eligibility threshold criteria is provided below:
3. Entity availing benefits under any other PLI scheme of Govt of India will not be eligible under this scheme for the same products.
Base year for the scheme –
FY 2019-20 will be the base year.
Scheme tenure –
1. Support provided for a period of 5 years subsequent to base year 2019-20 with 1-year gestation period.
2. Applications under the scheme open for a period of 6 months initially.
3. For applications received post initial application period, applicants will only be eligible for incentives for the remainder of the scheme of tenure.
Beneficiary selection criteria –
1. Basic / core components investing companies to be prioritized.
2. Large investment in the target segment to be prioritized over normal segment.
3. Mere assembly of finished goods will not be covered under the scheme.