Cabinet approves PLI schemes for solar PV, white goods worth Rs 10,738 cr
Published: Apr 07, 2021
By TIOLCORPLAWS News Service
NEW DELHI, APR 7, 2021: THE Cabinet on Wednesday approved two Production Linked Incentive (PLI) schemes for white goods and high-efficiency solar Photovoltaic (PV) cells, as part of the umbrella PLI policy for 13 sectors, of which nine have been approved.
The PLI scheme for high-efficiency solar panels will have an outlay of Rs. 4,500 crore to help India add capacity of 10,000 MW. It is expected to bring direct investment of around Rs. 17,200 crore, while generating 30,000 direct and 1.2 lakh indirect jobs in the sector. The government expects to save Rs. 17,500 crore by import substitution annually.
The scheme will be linked to the efficiency of the solar PV module, and sourcing of material from the domestic market.
The Cabinet also approved an outlay of Rs. 6,238 crore for white goods such as LED light and air conditioner, incentivising domestic production.
Incentives of 4-6 per cent will be extended on incremental sales of goods manufactured in India for a period of five years. The incentives shall be open to companies making brown field or green field investments.
The scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for the AC and LED industries, develop complete component eco-systems in India and create global champions manufacturing in India.
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. 1.68 lakh crore, exports worth Rs. 64,400 crore, earn direct and indirect revenues of Rs. 49,300 crore and create 4 lakh direct and indirect employment opportunities.
The government had announced the PLI schemes for 13 sectors with an outlay of Rs. 1.97 lakh crore in Budget 2021-22, to create national manufacturing champions and generate employment.
India will see minimum production of over USD 500 billion in five years as a result of the scheme.