The Ministry of Commerce announced on Wednesday that 64 applicants, with a combined investment commitment of Rs. 6,766 crore, have successfully secured approval under the Production-Linked Incentive (PLI) scheme for white goods.
In 2021, the Union Cabinet sanctioned the PLI scheme for white goods, earmarking an outlay of Rs. 6,238 crore for implementation from FY 2021-22 to FY 2028-29. The primary aim of the scheme is to stimulate domestic manufacturing and reduce dependence on imports, aligning closely with Prime Minister Modi’s vision of a self-reliant India.
Key features of the scheme include a focus on incentivizing the manufacturing of components and sub-assemblies rather than finished products. The ultimate goal is to boost domestic value addition from the current 20-25% to 75-80% by the scheme’s conclusion.
Investors were granted the flexibility to choose gestation periods until March 2022 (one year) or March 2023 (two years). Remarkably, all 15 projects opting for the 2021-22 gestation period have been successfully commissioned, surpassing expectations by achieving 234% of the total threshold investment.
Regular stakeholder engagements have played a crucial role in swiftly addressing any challenges encountered by companies benefiting from the PLI scheme. Notably, 13 foreign-owned companies have committed Rs. 2,090 crore, constituting approximately 30% of the total investment.
Investments have been distributed across 26 states, encompassing 45 districts and 128 locations throughout India. The PLI scheme has emerged as a pivotal driver in creating employment opportunities, with an estimated creation of around 47,851 direct jobs. Additionally, the scheme is nurturing the growth of a robust component ecosystem within the country.
Furthermore, the scheme effectively addresses critical manufacturing gaps for certain high-value components in air conditioners and LED lights, thereby fostering self-sufficiency and solidifying India’s position as a manufacturing powerhouse.
