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Union cabinet approves PLI schemes for white goods

The schemes are aimed towards the goal of Atmanirbhar Bharat, Goyal said


The Union cabinet, today, approved the production linked incentive (PLI) schemes for white goods, including air conditioners and LED lights, with a budgetary outlay of Rs 6,238 crore, and high efficiency solar photovoltaic modules with an outlay of Rs 4,500 crore. Both schemes are aimed towards the goal of Atmanirbhar Bharat, the government said.

Addressing the cabinet briefing, Union Minister Piyush Goyal said the prime objective of the PLI scheme was to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.

In case of the PLI scheme for white goods, an incentive of 4-6 per cent on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of air conditioners and LED lights. The scheme is expected to achieve growth rates that are much higher than existing ones for AC and LED industries, and create global manufacturing champions in the country.

“Incentives shall be open to companies making brown field or green field Investments. Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met for claiming incentives. An entity availing benefits under any other PLI scheme will not be eligible under this scheme for the same products but the entity may take benefits under other applicable schemes of centre and state governments,” the cabinet note said.

Goyal said that it was estimated that over five years, the 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.

In case of PLI scheme for developing high efficiency solar photovoltaic modules and an outlay of Rs 4,500 crore has been approved.

Currently, the solar capacity building depends largely upon imported solar PV cells and modules. The domestic manufacturing industry has limited operational capacities of such solar PV cells and modules. “The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity. It will also support the Atmanirbhar Bharat initiative,” the minister said.

Listing the outcomes of the scheme, Goyal said an additional 10,000 MW capacity of integrated solar PV manufacturing plants will be created, with direct investment of around Rs 17,200 crore in solar PV manufacturing projects; generate direct employment of about 30,000 and indirect employment of about 1,20,000 persons.

The minister expressed hope that current round of lockdowns carried out by the states will not impact the PLI scheme as manufacturing industries were exempted from it.

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