Cabinet approves PLI Scheme for Air Conditioners and LED Lights worth Rs 6238 crore
The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme- ‘National Programme on High Efficiency Solar PV Modules’ for achieving manufacturing capacity of Giga Watt with an outlay of Rs 4,500 crore. The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity and will also support the Atmanirbhar Bharat initiative.
Addressing the media in New Delhi after the Cabinet Meeting, Commerce and Industry Minister Piyush Goyal said that the scheme will add an additional 10 thousand MegaWatt capacity of integrated solar Photovoltaic manufacturing plants and will bring direct investment of around Rs 17,200 crore in solar PV manufacturing projects. He said, direct employment of about 30 thousand and Indirect employment of about 1 lakh 20 thousand persons will be generated.
Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. Solar PV manufacturers will be selected through a transparent competitive bidding process and PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules. Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.
The Union Cabinet also 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 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. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially. Union Minister Piyush Goyal said that the PLI Scheme for White Goods will extend an incentive of 4 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. A number of global and domestic companies including MSMEs are likely to benefit from the Scheme.
Mr Goyal said that it is estimated that over the period of five years, the PLI Scheme will lead to incremental investment of Rs 7,920 crore, incremental Production worth Rs one lakh 68 thousand crore and exports worth Rs 64,400 crore. Mr Goyal said, the scheme will create additional four lakh direct and indirect employment opportunities.