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PLI schemes for white goods, solar modules get Cabinet clearance


Feb 8, 2021
The Cabinet on Wednesday 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.

Investors in white goods will get incentives of 4-6 per cent on incremental sales (likely to be calculated over the base year of 2019-20) of products manufactured in India. Commerce and industry minister Piyush Goyal said the value addition for the AC industry is estimated to rise from the current 20-25 per cent to 75 per cent after the implementation of the scheme; in LED lights, it will jump to 70-75 per cent from 40 per cent.

Similarly, solar module manufacturers firms will be incentivised according to the efficiency and indigenous component of the panels. These are part of the 13 PLI schemes, announced by the government in the wake of the Covid-19 pandemic last year, to lure mainly large corporations to expand manufacturing, bolster supply chains and boost exports.

As for the PLI scheme in solar modules, the government expects it to help double the country’s module-making capacity from the current base of 10 giga-watt and add about 30,000 direct employment. The DPIIT and the Ministry of New and Renewable Energy will soon come out with detailed operational guidelines for companies to avail the incentives.


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