Centre approves Rs 6,238 cr PLI scheme for air-conditioners, LED lights

The proposal was approved in a Union Cabinet meeting, chaired by Prime Minister Narendra Modi

The Union Cabinet on Wednesday approved a production-linked incentive (PLI) scheme to boost domestic manufacturing capacity of solar PV modules and white goods - air conditioners and LED lights - with an outlay of Rs 10,738 crore.

The Cabinet, headed by Prime Minister Narendra Modi, has approved the Ministry of New & Renewable Energy's proposal for the implementation of the PLI scheme 'National Programme on High-Efficiency Solar PV (Photo Voltic) Modules' for achieving manufacturing capacity of gigawatts (GW) scale in high-efficiency solar PV modules with an outlay of Rs 4,500 crore. The cabinet also approved PLI schemes for white goods like air conditioners and LED Lights - with a budgetary outlay of Rs 6,238 crore.

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, Union Commerce and Railways Minister Piyush Goyal told the media after the cabinet meeting.

To boost domestic manufacturing, the Centre had set aside an outlay of Rs 1.97 lakh crore in Union Budget 2021-22 for the production-linked incentive (PLI) schemes for 13 key sectors to create national manufacturing champions and generate employment opportunities was announced.

Read: Cabinet clears Rs 4,500 cr PLI scheme to boost solar PV modules manufacturing

So far, the scheme for six segments has been approved - electronic/technology products; pharmaceuticals; telecom & networking products; food products; white goods; and high-efficiency solar PV modules. Another four -- automobiles & auto components; advanced chemistry cell (ACC) battery; textile products; speciality steel -- are in the process of obtaining Cabinet approval.

The PLI scheme for solar PV modules is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing a direct investment of Rs 17,200 crore. It is likely to create direct employment of around 30,000 and indirect employment of 1.2 lakh, according to the government. Solar PV manufacturers will be selected through a transparent competitive bidding process. The PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high-efficiency solar PV modules.

The PLI scheme for white goods shall 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," an official statement said.

It is estimated that over five years, the scheme will lead to an 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.