Govt approves PLI scheme for white goods, PV modules: Here’s how everyone is reacting
The government approved a budgetary outlay of ₹4,500 crore for PV module and a budgetary outlay of ₹6,238 crore for white goods.
The Union Government on Wednesday approved the Production Linked Incentive (PLI) scheme to boost the production of the solar PV (photo-voltaic) modules and white goods, which includes air conditioners and LED lights in India. The government approved a budgetary outlay of ₹4,500 crore for PV module and a budgetary outlay of ₹6,238 crore for white goods.
With this development, the government is aiming at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing a direct investment of ₹17,200 crore and creating direct employment of around 30,000 and indirect employment of 1.2 lakh.
The government also said that the PLI scheme for white goods will extend the incentive of 4% - 6% on incremental sales of goods manufactured in India for a period of five years, during which time this scheme is expected to lead to an incremental investment of ₹7,920 crore, incremental production worth ₹1,68,000, exports worth ₹64,400 and direct and indirect revenues worth ₹49,300 crores.
The India Cellular & Electronics Association (ICEA) welcomed this decision saying that it will make India a significant part of the global supply chain. "ICEA considers this to be a significant development post announcement of the PLI Scheme for Telecom Equipments and IT Hardware Products. This scheme is designed to create a 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. It will also lead to investments in innovation and research and development and upgradation of technology,” Pankaj Mohindroo, Chairman, ICEA said in a statement.
"The PLI Scheme will lead to incremental investment of Rs.7,920 Crore, incremental Production worth Rs. 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", he added.
Director of Goldmedal electricals too hailed this decision saying that it will help in making the country truly Atmanirbhar. “By allotting a budget of Rs. 6,238 crore for LED lights and other products through the production linked incentive (PLI) scheme, Indian government is moving one step closer to making the country truly Atmanirbhar...Initiatives such as these will definitely support home-grown companies such as Goldmedal electricals to augment its manufacturing capabilities and support in creation of jobs as well as increase exports. We are confident that measures such as the PLI will make India an integral part of the global supply chains and be instrumental in achieving the economic growth thereby creating global leaders of manufacturing in India,” Kishan Jain, Director at Goldmedal Electricals said in a statement.
Federation of Indian Chambers of Commerce & Industry (FICCI) said that AC components and LED #PLI announced today will go a long way in making India a hub of manufacturing in durable. “AC components and LED PLI announced today will go a long way in making India a hub of manufacturing in durable...This would also help in creating a robust supply chain of durables in the country,” said Uday Shankar, President, FICCI.