NEW DELHI: The government on Monday reopened the window for fresh applications from companies willing to invest under the Production Linked Incentive (PLI) scheme for white goods and shifted to a system of quarterly processing of incentive claims for the sector.
This will be the third round of applications under the scheme.
The moves signal a more liberal approach by the government in doling out the sops, given that the PLI scheme hasn’t made much headway in many sectors, partly due to the stringent conditions attached.
Quarterly release of the incentives may be made applicable to other sectors covered by the PLI as well, sources said.
The PLI scheme for white goods is to run from 2021-22 to 2028-29, with an outlay of Rs 6,238 crore. In the third and latest round of applications, existing beneficiaries can also apply if they propose to invest more by way of switching over to higher target segments of their group companies applying under different target segments, a statement by the Ministry of Commerce and Industry said.
The shift from annual settlement to quarterly settlement of incentive claims will enable the beneficiary companies to maintain liquidity in the business, better working capital management, and enhance their operational efficiency, the ministry added.
PLI for white goods, which includes air conditioners and their parts and LED lights, is run by the Department for Promotion of Industry and Internal Trade (DPIIT).
Quarterly settlement of claims would in some way also address the complaints of slow off-take of incentives. According to data of the Rs 1.97 trillion available for incentives, only 5% 0r around Rs 9700 crore has been disbursed till March 2024.
The earlier rounds of applications for white-goods PLI divided the companies into two groups – those who opted for gestation period of up to March 2022 and some who opted for March 23.
For new applicants and existing beneficiaries opting for an investment period up to March 2023 and seeking to move to a higher investment category the benefits will be available for a maximum of three years.
For existing beneficiaries opting for the investment period up to March 2022 seeking to move to higher investment category in the proposed third round would be eligible for PLI for maximum two years only, the statement said.
The window for fresh applications will be open on July 15 and close on October 12.
So far, 66 applicants with committed investment of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme. For manufacturing components of Air conditioners (ACs) companies selected include Daikin, Voltas, Hindalco, LG, Blue Star, Panasonic, Midea, Havells, IFB, Lucas and Hitachi. In manufacturing components of LED lights, companies like Dixon, Crompton Greaves, Halonix, Orient and Surya and among the beneficiaries.
Source: The Financial Express
