Cabinet okays ₹10,738 crore PLI scheme for solar modules, white goods.

The cabinet on Wednesday approved 10,738 crore production-linked incentive (PLI) schemes for solar modules and white goods as part of the overall 1.97 lakh crore PLI series under the government’s plan to make India a global manufacturing hub.

While 4,500 crore was allocated for manufacturing of high-efficiency solar modules, a 6,238 crore outlay was approved for white goods — air conditioners and LED lights. The Union budget on February 1 committed 1.97 lakh crore under PLI schemes for 13 key sectors.

The PLI series is an effort of the Narendra Modi government to synergise India’s resources to make it an international manufacturing destination and an important part of the global supply chain, commerce and industry minister Piyush Goyal said after the cabinet meeting.

Goyal said the seven PLI schemes already approved had received an encouraging response from investors. Scheme for electronic components and mobile manufacturing received 16 applications and 35,000 crore was already sanctioned. Similarly, pharmaceutical (raw materials) and manufacturing of medical devices received 47 and 14 applications, respectively.

“Solar PV manufacturers will be selected through a transparent competitive bidding process. PLI will be disbursed for five 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,” an official statement said.

The PLI scheme for white goods shall extend an incentive of 4-6% 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 second statement said. “Selection of companies for the scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods shall not be incentivized,” it added.

Nilaya Varma, co-founder and CEO of consulting firm Primus Partners, said, “The PLI scheme is expected to be a game-changer in India’s journey towards self-reliance and other national priorities such as job creation, attracting investments and increasing exports.”

“Given the changing global dynamics, it is essential to enhance global competitiveness of the Indian manufacturing segment to gain a higher share of worldwide merchandise trade, while also reducing domestic dependence on imports.”

Source- Hindustan Times.

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