PLI scheme approved for manufacturing of AC-LED, 4 lakh people will get employment
The Central Government on Wednesday approved the Production Based Incentive (PLI) scheme for Air Conditioner and LED Lights at a cost of Rs 6,238 crore. This decision has been taken in the cabinet meeting chaired by Prime Minister Narendra Modi.
Manufacturing will get a boost
During this, Commerce and Industry Minister Piyush Goyal said that with the approval of the PLI scheme for AC and LED, domestic manufacturing in these areas will be strengthened. Its objective is to promote globally competitive manufacturing in the country by removing inefficiencies in the relevant sectors, cutting costs and ensuring efficiency.
Companies will get a 4-6% boost
This scheme has been formulated with the objective of creating a completely friendly environment and making India an integral part of the global supply chain. This is expected to attract global investment, generate large number of employment opportunities and increase exports continuously. According to the statement, “Under the PLI scheme, companies associated with the manufacturing of air conditioners and LED lights will be encouraged at the rate of 4 percent to 6 percent on increased sales of manufactured goods in India during the next 5 years.”
For this, the companies will be selected on the basis of encouraging all the assembling of parts and parts which are not currently being built with sufficient capacity in India. According to the statement, the finished goods will not be given incentives just for assembly. It states that companies that fulfill pre-eligibility criteria for various target areas will be considered eligible to participate in the scheme. Companies investing in old and new projects will also be considered eligible for the incentive scheme. In order to claim incentives, the condition of increase in investment and sales in respect of goods manufactured on the base year has to be met.
4 lakh people will get employment
The scheme is expected to play a major role in achieving high growth rates in the AC and LED light business, to develop a complete environment of ancillary parts in India, and to prepare international companies in the field of manufacturing in India. According to an estimate, an additional investment of Rs 7,920 crore from the scheme will happen in the next 5 years. 4 lakh employment opportunities will be created. Goyal said that from the plan, AC will have 25 to 75 percent price while LED light will have 40 to 45 percent price addition.
