OBJECTIVE: The Production Linked Incentive Scheme for White Goods (PLIWG) proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain. Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
TARGET SEGMENTS:
| Air conditioners |
|
| LED Lights
|
|
SALIENT FEATURES:
-
- It is a central sector scheme.
- Implementing agency: Department for Promotion of Industry and Internal Trade (DPIIT)
- Quantum of Incentive:
- The PLI Scheme shall extend an incentive of 4% to 6% on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year and one year of gestation period.
- The applicant will have to fulfill both criteria of cumulative incremental investment in plant and machinery as well as incremental sales over the base year in that respective year to be eligible for PLI. (The first year of investment will be FY 2021-22 and the first year of incremental sale will be FY 2022-23.)
- The Scheme is Fund Limited and even over achievement is not incentivized.
- Eligibility:
- Incentive under the Scheme shall be provided to Companies making brown field or green field investments for manufacturing in target segments in India.
- Any entity availing benefits under any other PLI Scheme of Govt. of India will not be eligible under this scheme for same products.
- Eligibility shall be subject to thresholds of cumulative incremental investment and incremental sales (net of taxes) of manufactured goods (as distinct from traded goods) over the base year for the respective year.
- Tenure of the Scheme: Support under the Scheme shall be provided for a period of five years i.e. FY 2021-22 to FY 2028-29 subsequent to the base year (FY 2019-20) FY 2021-22 to FY 2028-29.
- Selection of Beneficiaries: Selection of companies for the Scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods shall not be incentivized.
- Review and Monitoring: The Empowered Group of Secretaries (EgoS) chaired by Cabinet Secretary will monitor the PLI scheme and undertake periodic review.
