Recently, the Production Linked Incentive Scheme for White Goods Manufacturers was approved and notified by the Government of India. The scheme will be implemented with the total outlay of Rs.6,238 Crores over a period of 5 years.
The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain.
Major highlights of the scheme:
ü Products covered under this scheme are – components of Air Conditioners and LED lights
ü Incentive will be given of 4% to 6% on incremental sales (net of taxes) over the base year of goods manufactured in India
ü To be eligible for the incentive, 2 criteria have to be fulfilled as follows:
o Incremental investment in plant and machinery
o Incremental sales over the base year (FY2019-20)
ü The minimum thresholds for eligibility is as follows:
Rs. In Crores
With these incentives to the domestic manufacturers, it is a step towards making the local market self-sufficient.