PLI Scheme For White Goods

February 8, 2024

GS Paper III Indian Economy

Context:

A committed investment of 6766 crores has been approved under the Production Linked Incentive Scheme (PLI) for White Goods containing Air Conditioners and LED lights.

PLI Scheme for White Goods: Key Highlights

64 Applicants are approved under the project.
All the companies who opted for Gestation Period 2021-22 have been commissioned and achieved 234% of their total threshold investment.

PLI Scheme For White Goods (Air Conditioners and LED Lights):

Nodal Agency: Ministry of Commerce.
Tenure: 5 years from FY 2021-22 to FY 2028-29.
Objective: To create a complete component ecosystem for the Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
Target segments: High-value and/ or Low-value intermediaries for production of AC & LED Lights
Incentives: The scheme will extend an incentive of 4-6% on incremental turnover over base year (2019-20) of goods sold in India and exported to global markets, to eligible companies for a period of 5 years.

What Are White Goods?

White goods refer to heavy consumer durables or large home appliances, which were traditionally available only in white.
- Examples: washing machines, air conditioners, stoves, refrigerators, etc.

White Goods

They are consumer durables made of enamel-coated sheet steel
Indian white goods industry: The Indian appliance and consumer electronics (ACE) market reached INR 76,400 crore in 2019 and is expected to double to reach INR 1.48 lakh crore by 2025

Production Linked Incentive Scheme

Total budget: Production Linked Incentive Scheme was approved in 2020 with an outlay of INR 1.97 Lakh Crores across 14 key sectors
Sectors:Their are total 14 sectors namely,
- Mobile Manufacturing and Specified Electronic Components, Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients.
- Manufacturing of Medical Devices, Automobiles and Auto Components, Pharmaceuticals Drugs
- Specialty Steel, Telecom & Networking Products, Electronic/Technology Products,White Goods (ACs and LEDs)
- Food Products, Textile Products: MMF segment and technical textiles, High efficiency solar PV modules, Advanced Chemistry Cell (ACC) Batteries, and Drones and Drone Components.
Objective: To make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale, and ensuring efficiencies.
- It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains.

Also Read: India’s Push For Energy Efficiency By EESL

News Source: News on AIR

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