Recently the Cabinet approved production-linked incentive (PLI) schemes for white goods and solar modules, which would together cost the government Rs 10,738 crore over five years.
Under the scheme for white goods, eligible investors in air-conditioners, LED lights and such components will be granted a total incentive of Rs 6,238 crore. The scheme for solar modules promises benefits of Rs 4,500 crore. PLI Scheme for White Goods shall provide an incentive of 4% to 6% on incremental sales of goods manufactured in India. The scheme is for a period of five years for the manufacturers of Air Conditioners and LED Lights.
Selection of companies under the scheme aims to incentivize the manufacturing of components or sub-assemblies in India. Mere assembly of finished goods shall not qualify for incentives. Incentives shall be open to companies making both brownfield or green field Investments. The scheme is estimated to lead to an incremental investment of ₹7,920 crore over five years. It will lead to production worth ₹1.68 lakh crore as well as lead to 4 lakh jobs.
The PLI scheme for High-Efficiency Solar PV (Photovoltaic) Modules aims to help the Government of India in being able to power millions more homes with the World’s lowest electricity costs.
The solar capacity addition presently depends largely upon imported solar PV cells and modules. The domestic manufacturing industry has limited operational capacities of solar PV cells and modules.
Secondly, under the scheme, Solar PV manufacturers will be selected through a transparent competitive bidding process.
The incentives will be disbursed for 5 years post commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules.
A Manufacturer will get reward for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.
The scheme may lead to 10,000 MW of additional capacity of solar PV plants and investment of around ₹17,200 crores in solar PV manufacturing projects. It would also lead to direct employment of 30,000 people and indirect jobs to 1.2 lakh.
