Cabinet approves ₹ 6,238 Cr for air-conditioners and other white goods

Production worth ₹ 1.68 Lakh Crore and Exports worth ₹ 64,400 Crore Estimated in Five Years.

Taking another important step towards the vision of ‘Atmanirbhar Bharat’, the Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of ₹ 6,238 crore.

The PLI Scheme for White Goods shall extend an incentive of 4 percent to 6 percent on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of Air Conditioner and LED Lights. Different segments have been earmarked for different types of components separately to specifically target global investments into desired areas. Selection of companies for the Scheme shall be done so as to incentivise manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods shall not be incentivised.

An entity availing benefits under any other PLI Scheme of Govt. India will not be eligible under this scheme for the same products but the entity may take benefits under other applicable schemes of Govt. of India 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.

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 ₹ 7,920 Crore, incremental Production worth ₹ 1,68,000 Crore, exports worth ₹ 64,400 Crore, earn direct and indirect revenues of ₹ 49,300 crore and create additional four lakh direct and indirect employment opportunities.