An official statement said that applications of certain companies for claiming incentives under the production linked incentive (PLI) scheme for the white goods (Air Conditioners and LED Lights) are under examination and there is no delay in disbursement.
PLI scheme for White Goods
- It is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
- The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) in 2021.
- The scheme will be implemented as a pan India scheme and is not specific to any location, area or segment of population.
- Objectives: It proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain. Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
- Incentives: The scheme will extend an incentive of 4-6% on incremental turnover over base year (2019-20) of goods sold in India and exported to global markets, to eligible companies for a period of 5 years.
- Applicant can be any company that should be incorporated in India under the provisions of the Company Act, 2013.
- Eligibility shall be subject to the achievement of thresholds of net incremental sales of Eligible Products for the respective financial year over the base year and cumulative incremental investment in the preceding financial year.
- Any entity availing benefits under any other PLI Scheme of Govt. of India will not be eligible under this scheme for same products.
- Time period: It is to be implemented over FY 2021-22 to FY 2028-29.
Q1) What is the purpose of the PLI Schemes?
It is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.