They would get a 4% to 6% incentive on additional merchandise sales for five years
The Union cabinet on Wednesday approved two production-related incentive programs for household appliances (air conditioners and LED lights) and high-efficiency photovoltaic solar modules.
The Cabinet, in a meeting chaired by Prime Minister Narendra Modi, took a further step towards the vision of “Atmanirbhar Bharat” (Autonomous India) with the approval of the ₹ 6,238 crore PLI program for air conditioners and air conditioners. LED, a government statement said.
“The main objective of the PLI program is to make manufacturing in India competitive on a global scale by removing sectoral handicaps, creating economies of scale and ensuring efficiency gains. It is designed to create a complete ecosystem of components in India and make India an integral part of global supply chains, ”the government said.
The program would extend a 4% to 6% incentive on additional sales of products made in India for five years. The program is estimated to lead to an additional investment of ₹ 7,920 crore over five years and lead to production worth ₹ 1.68 lakh crore, as well as 4 lakh jobs.
The Cabinet also approved a proposal from the Ministry of New and Renewable Energy for a PLI program for high efficiency photovoltaic solar modules with an expenditure of ₹ 4,500.
“The increase in solar capacity is currently largely dependent on imported solar photovoltaic cells and modules, as the domestic manufacturing industry has limited operational capacities of solar photovoltaic cells and modules. The national program on high efficiency photovoltaic solar modules will reduce dependence on imports in a strategic sector such as electricity. It will also support the Atmanirbhar Bharat initiative, ”the government said.
The program is expected to lead to 10,000 MW of additional solar PV plant capacity and an investment of around ₹ 17,200 crore in solar PV panel manufacturing projects, he said. The program would lead to the direct employment of 30,000 people and indirect jobs at 1.2 lakh.