Application window for ACs, LED lights under PLI scheme reopened, Pg 15.

Key Highlights:

• Application window re-opened for the fourth time for the Production Linked Incentive (PLI) scheme for white goods [air conditioners (ACs) and LED lights] from September 15 to October 14.
• The scheme, initiated in April 2021, provides incentives of 4-6% on incremental sales to boost domestic manufacturing.
• With an outlay of ₹6,238 crore, the scheme aims to promote the production of AC and LED light components from 2021-22 to 2028-29.
• As of now, 83 applicants have been selected as beneficiaries with committed investments of ₹10,406 crore.

Detailed Insights:

• The reopening of the application window reflects the industry's increased interest and confidence in manufacturing AC and LED components in India.
• Both new applicants and existing beneficiaries seeking to expand investments or switch to higher target segments are eligible to apply.
• The PLI scheme, initially launched in March 2020, now encompasses 14 sectors with a total outlay of ₹1.97 lakh crore.
• Till the end of June, a cumulative incentive amount of ₹21,534 crore has been disbursed under the PLI scheme for 12 sectors.
• Sectors benefiting from incentives include electronics, IT hardware, bulk drugs, medical devices, pharmaceuticals, and telecom.

Key Concepts Involved:

• Production Linked Incentive (PLI) Scheme: A scheme that gives financial incentives to boost domestic manufacturing and attract investments.
• White Goods: Large household appliances such as air conditioners, refrigerators, and washing machines.
• Incremental Sales: The increase in sales revenue achieved as a result of investments or policy interventions.