Govt approves PLI scheme for air conditioners, LEDs worth Rs 6,238 cr

at 4:36 pm
Aqua Farmers

New Delhi (NVI): The Union Cabinet today approved a Production-Linked Incentive (PLI) scheme for manufacturing of air-conditioners, LED lights and high frequency solar PV modules in the country, with an outlay of Rs 6,238 crore, to make manufacturing in India globally competitive.

Under the scheme, incentives worth Rs 6,238 crore will be provided over 5 years for manufacturing of these products in the country, giving an impetus to India’s service and hardware manufacturing output.

The decision, which was taken at the Union Cabinet meeting today chaired by Prime Minister Narendra Modi, was announced by Commerce and Industry Minister Piyush Goyal, and Union Environment Minister Prakash Javadekar, during the Cabinet briefing.

The proposal for implementation of the Production Linked Incentive (PLI) Scheme ‘National Programme on High Efficiency Solar PV (Photo Voltic) Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules, was made by the Ministry of New & Renewable Energy.

Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules, the Government said in an official statement.

The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity. It will also support the Atmanirbhar Bharat initiative, it added.

“Solar PV manufacturers will be selected through a transparent competitive bidding process. PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules,” read the official statement.

Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition, it said.