The government on Wednesday approved a production-linked incentive scheme for air-conditioner and LED light sectors with an outlay of ₹6,238 crore.
The proposal was approved in the weekly Union Cabinet meeting, which was chaired by Prime Minister Narendra Modi.
The PLI scheme for white goods will extend an incentive of 4-6% on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of ACs and LED lights, the government announced in a statement.
The scheme will be implemented across India and won’t be specific to any location, area or segment of population, the statement further said.
Addressing a press conference along with Union minister Prakash Javadekar on Cabinet decisions, commerce and industry minister Piyush Goyal said that the approval of the scheme will give a boost to domestic manufacturing.
“With this decision of the Union Cabinet today, a total of 9 out of 13 PLI schemes have been approved to date, while the rest of the 4 schemes are in an advanced stage. Together these schemes will give a big push to India’s manufacturing sector,” said Goyal.
The PLI scheme is aimed at boosting domestic manufacturing in the country. It is designed to create 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.
The government said that in five years, the PLI scheme will lead to incremental investment of ₹7,920 crore, incremental production worth ₹1,68,000 crore, exports worth ₹64,400 crore, earn direct and indirect revenues of ₹49,300 crore and create additional four lakh direct and indirect employment opportunities.