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.
