The government will roll out on April 1 a proposed production-linked incentive (PLI) scheme for white goods, beneath which eligible investors in air-conditioners and LED lights will be granted incentives worth Rs 6,238 crore more than 5 years.
The expenditure finance committee final week cleared the proposal of the division for promotion of market and internal trade (DPIIT). It will now be placed ahead of the Cabinet for final clearance. Potential investors will have at least six months immediately after the scheme’s launch to apply for it and submit plans, DPIIT secretary Guruprasad Mohapatra stated on Friday.
Under the scheme, eligible investors are now proposed to get incentives of 4-6% on incremental sales (to be calculated more than the base year of 2019-20) of goods manufactured in India for a period of 5 years.
Of course, the positive aspects will be topic to particular situations, such as on the threshold of cumulative incremental investments.
“PLI is a game-changer scheme. It will promote global champions in India,” Mohapatra told reporters.
The PLI scheme for white goods, which is getting spearheaded by the DPIIT, was one of the 13 such schemes announced by the government in the wake of the Covid-19 pandemic final year. The concept was to lure mostly big providers to ramp up manufacturing base and increase exports.
The total incentives beneath the PLI schemes, covering sectors such as telecom, electronics, auto portion, pharma, chemical cells and textiles, stood at `1.97 lakh crore more than a 5-year period. Various departments are firming up proposals relative to the sectors they oversee.
The DPIIT expects the incentive to outcome in incremental production of ACs and LED lights worth Rs 1,68,000 crore more than 5 years. It will most likely lead to extra exports of Rs 64,400 crore, additional direct tax collection of Rs 11,300 crore and GST mop-up of Rs 38,000 crore more than 5 years.
Stressing the prospective of numerous PLI schemes and the surge of interest of worldwide investors in India, Mohapatra stated, “We are actively monitoring more than 1,000 companies in the world which are either already in India and thinking of expanding or thinking of entering India. We are carefully and closely monitoring their discussions.”