- About us
- Site map
- Contact Us
- Contact Us
The Ministry of Commerce and Industry vide Notification dated 16 April 2021 has approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) to be implemented over FY 2021-22 to FY 2028-29 with a budgetary outlay of Rs. 6,238/- crores.
This Scheme proposes to boost the domestic manufacturing and attract large investments in the White Goods manufacturing value chain. Support under the Scheme will be provided to companies/entities engaged in manufacturing of components of Air Conditioners and LED Lights in India as under:
This PLI Scheme shall extend an incentive of 4% to 6% on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments, to eligible companies, for a period of 5 years subsequent to the base year and one year of gestation period.
The applicants will have to fulfill both criteria of cumulative incremental investment in plant and machinery as well as incremental sales over the base year in that respective year to be eligible for PLI. The first year of investment will be FY 2021-22 and the first year of incremental sale will be FY 2022-23. Actual disbursement of PLI for a respective year will be subsequent to that year.
Incentive under the Scheme shall be provided to Companies making brown field or green field Investments for manufacturing in target segments in India. The eligibility shall be subject to thresholds of cumulative incremental investment and incremental sales of manufactured goods (as distinct from traded goods) over the base year for the respective year. The Applicants must meet all the threshold conditions to be eligible for disbursement of incentive as detailed under Annexure A to the notification.
It has been further provided that any entity availing benefits under any other PLI Scheme will not be eligible under this scheme for same products but the entity may take benefits under other applicable schemes.
This Scheme shall be provided for a period of 5 years subsequent to the base year as defined and one year of gestation period for fructifying investment to be implemented over FY 2021-22 to FY 2028-29. It has been further provided that FY 2019-20 shall be treated as the base year for computation of cumulative incremental investment and incremental sales of manufactured goods as well as for prequalification criteria.
It has been further provided that the selection of companies for this Scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Companies investing in basic/core components will have a higher priority.
Hon’ble PM of India, Sh. Narendra Modi vide tweet dated 07 April 2021 had provided that this PLI Scheme for White Goods is yet another initiative that will strengthen the movement to create an Aatmanirbhar Bharat. The Government estimates that over the period of 5 years, this 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 four lakh direct and indirect employment opportunities.
The Air Conditioning and LED Manufacturers in India shall look to capitalize on this opportunity and explore their eligibility to avail maximum benefits under this scheme.
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
Sign up for the Newsletter