News Brief
Union Cabinet Approves PLI Scheme For ACs And LED Lights, To Create Four Lakh Jobs And Exports Worth Rs 64,400 Crore
Workers at an assembly line of air-conditioner compressor plant at Matoda, near Ahmedabad. (SAM PANTHAKY/AFP/Getty Images)
Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs. 6,238 crore.
The PLI Scheme for White Goods will extend an incentive of 4 per cent to 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.
Selection of companies for the Scheme will be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India with sufficient capacity. Mere assembly of finished goods shall not be incentivized, the Ministry of Commerce and Industry said in a statement.
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.
The Scheme is expected to be instrumental in developing complete component eco-systems in India and create global champions manufacturing in India. 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, this 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.
Also the PLI Scheme for White Goods can create additional four lakh direct and indirect employment opportunities.
The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
