new Delhi. The Modi government’s cabinet has approved the Incentive Scheme (PLI) for the production of air conditioners and LED lights under the vision of self-reliant India. A budget allocation of Rs 6,238 crore has been made for this. This decision will help in generating revenue of Rs 49,300 crore and creation of 4 lakh jobs.
Under the Production Linked Incentive (PLI) scheme, companies engaged in manufacturing of air conditioners and LED lights will be given incentives at the rate of 4% to 6% on the sale of manufactured goods in India during the next 5 years. In order to attract global investment in the relevant sectors, various sectors have been identified keeping in mind the different types of spares. The companies for the scheme will be selected on the basis of encouraging the manufacture of components and part of the equipment.
This way companies will be selected
– The selection of companies will be on the basis of incentive to manufacturing parts or sub assembling. Devices that are not yet manufactured in India at full capacity. No incentive will be available for assembling.
– Companies that meet pre-determined standards will be able to take advantage of the scheme. Companies investing in brown field and green field will also be considered eligible for the scheme. The government has clearly stated that any company enjoying the benefit of any other PLI scheme will not be able to avail the same product.
– The scheme will be applicable in the entire country and many companies in the country and abroad, including MSME companies, are expected to benefit from this scheme.
Companies wishing to take advantage of this must meet the mandatory BIS and BEE standards for sale in the domestic market and the applicable standards in the global market.
– This scheme will help in research, development and innovation in investment and technology upgradation.
How much will be invested in 5 years
According to the information, the PLI scheme will provide incremental investment of Rs 7,920 crore, incremental production of Rs 1.68 lakh crore, products exports worth Rs 64,400 crore and direct and indirect revenue of Rs 49,300 crore during the next 5 years. Besides, 4 lakh direct, indirect opportunities of employment will be created. According to Commerce Minister Piyush Goyal, this scheme will increase the value addition from 25 per cent to 75 per cent in AC segment and 40-45 per cent in LED lights. The 13 sectors taking advantage of PLI will be able to do additional production of about 35 lakh crore rupees in the next five years.