PLI scheme for ACs, LED lights to exclude ‘mere assembly’

DPIIT’s norms prioritise production of basic components

The department for promotion of industry and internal trade (DPIIT) has notified the PLI scheme for ACs and LED lights and said that selection of companies to avail the incentives would be done to support manufacturing of components which are not made in India presently.

It said that mere assembly of finished goods would not be incentivised and companies investing in basic/core components would get a higher priority.

Earlier this month, the government approved a production linked incentive (PLI) scheme for white goods — Air Conditioners (ACs) and LED lights — with an outlay of ₹6,238 crore. It will be implemented over 2021-22 to 2028-29.

According to the notification, the Empowered Group of Secretaries chaired by Cabinet Secretary will monitor the PLI scheme, undertake periodic review of the outgo under the scheme, ensure uniformity of all PLIs and take appropriate action to ensure that the expenditure is within the prescribed outlay.

DPIIT said that the incentive per beneficiary will be applicable on incremental sales (net of taxes) of manufactured goods (as distinct from traded goods) over the base year (2019-20) subject to ceilings.

Focus on ‘Made in India’

“Mere assembly of finished goods shall not be incentivised. Selection of companies for the scheme shall be done so as to incentivise manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity,” it said.

Support under the scheme will be provided to companies/entities engaged in manufacturing of components of ACs (such as copper tubes, aluminium foil and compressors) and LED lights (like LED chip packaging, resistors, ICs, and fuses).

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