Production Linked Incentive (PLI) Scheme for Solar Panels, Air Conditioners and LED Light Sectors

Union cabinet headed by Prime Minister Narendra Modi approved Production Linked Incentive (PLI) Scheme for High efficiency Solar PV modules as well as White goods – Air Conditioners and LED lights sectors on April 7, 2021. The main aim of this scheme is to boost domestic production. Thereby more employment opportunities will be generated. It aims at making India globally competitive. This is a crucial step towards Aatmanirbhar Bharat and it empowers the same vision.

Scheme Overview:

List of scheme lunched by Central Government

Scheme Objectives and Benefits:

• The main objective of the scheme is to increase domestic production
• This scheme will enable to generate employment opportunities in various sectors of the economy
• Under this scheme manufacturing sector in the economy is at the core thereby aiming to make India globally competitive
• This scheme will also enable increased productivity and innovation
• In the long run, it will impact increased economic growth ad development
• It is a crucial step towards Aatmanirbhar Bharat and Make in India mission.

Scheme Details:

• Production Linked Incentive (PLI) scheme for solar panels, air conditioners and LED light sectors is approved by the Union cabinet headed by PM Narendra Modi on April 7, 2021
• This scheme focuses to boost the domestic production in the high efficiency Solar PV modules/ panels and white goods – Air Conditioners and LED lights sectors
• PLI scheme for Air Conditioners and LED lights aims at making India globally competitive by creating economies of scale
• This scheme aims to make the country a part of global supply chains
• It also tends to increase employment opportunities
• Under this scheme an incentive of 4% to 6% on sales of goods made in India for 5 years
• It tends to increase investment of Rs. 7,920 crores in 5 years leading to Rs. 1.68 lakh crores production
• It tends to create 4 lakh new jobs in the respective and allied sectors
• Total budget allocated for the PLI scheme for air conditioners and LEDs is Rs. 6238 crores
• PLI scheme for high efficiency Solar PV modules/ panels aims at boosting domestic production
• This scheme aims to reduce the dependency of the country on electricity
• Under this scheme the solar capacity addition will increase
• It tends to increase investment of Rs. 17,200 crores in solar PV manufacturing projects
• It tends to create 30,000 new jobs as direct employment in the respective sector and 1.2 lakh jobs in the allied sectors
• Total budget allocated for the PLI scheme for solar panels is Rs. 4,500 crores
• PLI scheme is a vital step towards Aatmanirbhar Bharat and Make in India mission