The Cabinet on Wednesday approved two production-related incentive programs (PLIs) for ₹6,238 crore. According to a briefing from the cabinet of Union Minister Prakash Javadekar and Piyush Goyal, LIPs have been considered for high efficiency photovoltaic solar modules, LEDs and air conditioner.
The proposal was approved at a Union Cabinet meeting, chaired by Prime Minister Narendra Modi. Trade and Industry Minister Piyush Goyal said program approval for ACs and LEDs will give domestic manufacturing a boost.
Union Minister Piyush Goyal said the Union Cabinet chaired by Prime Minister Narendra Modi approved the Production Incentive Program (PLI) for the manufacture of white goods (i.e. (i.e. air conditioners and LEDs) and high frequency photovoltaic solar modules. “
He added: “With this decision of the Union Cabinet today, a total of 9 of the 13 LIP programs have been approved to date, while the remaining 4 are at an advanced stage. Together these programs will yield a big boost to India’s manufacturing sector. “
The incentive of ₹6,238 crores will be donated over 5 years for manufacturing in India. This will equal a production value ₹1.68 and export value ₹64,400 crore. It will also create 4 lakh of direct and indirect jobs.
The 4-6% incentive on additional product sales will go to companies engaged in manufacturing LEDs and air conditioners. Other mandatory BIS and BEE quality standards for sales would be applied in domestic markets and applicable standards for global markets.
Goyal said in a tweet that the production-related incentive program aims to boost domestic manufacturing in the country. Govt. led by Prime Minister NarendraModi ji approves PLI program for air conditioners and LED lights to make manufacturing in India competitive globally. India’s growth story will be driven by its flagship PLI program, building local industry capacity and job growth.