The scheme will offer 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 ACs and LED lights. In this case, 2019-20 will be treated as the base year.
It will result in incremental investment and production of Rs 7,920 crore and Rs 1.68 trillion, respectively, and exports worth Rs 64,400 crore. It is expected to create additional 400,000 direct and indirect employment opportunities.
According to the industry, the value addition for the AC industry will increase from current level of 20-25 per cent to 75 per cent. In the case of the LED lights industry, it will increase from 40 per cent to 70-75 per cent. “This would also result in starting manufacturing of components or sub-assemblies, which are not manufactured in India presently,” the statement said.
The department for promotion of industry and internal trade (DPIIT) and Invest India will also take steps to promote the scheme overseas by disseminating mailers to the embassies of India in home countries of global majors in ACs and LED lights industry.
“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 upgrade of technology. A number of global and domestic companies, including a number of MSMEs, are likely to benefit from the scheme,” the statement said.
PLI for solar PV modules
The scheme is expected to add 10,000 MW capacity to integrated solar PV manufacturing plants and bring direct investment of around Rs 17,200 crore in such projects. It will also generate direct employment of about 30,000 and indirect employment of about 120,000. The scheme is expected to cut import dependence in a strategic sector like electricity, another statement said.
Manufacturers will be incentivised for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI scheme
will help not only in setting up of domestic manufacturing capacities in upstream stages of solar PV manufacturing, like poly silicon and wafers, which are presently absent in the country, but is likely to augment the entire solar PV manufacturing ecosystem, including boost to ancillary units and MSMEs,” it said.
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