ANI Photo | Changes notified in Production Linked Incentive Scheme for White Goods

On the basis of various suggestions received from the Production Linked Incentive Scheme (PLI) for White Goods Beneficiaries as well as Industry Associations, further changes in the Scheme Guidelines have been made, with a view to simplify the operation of the Scheme as well as to improve the ease of doing business.
According to the Ministry of Commerce and Industry, certain changes have been incorporated under the Scheme Guidelines of the PLI Scheme for White Goods (ACs and LED Lights) which include the adoption of the Cost-Plus method in place of the CUP (comparable uncontrolled price) method for calculation of sales prices in case of captive consumption or supplies to group companies. It also required amendment in the definition of ‘Arm’ length’.
Secondly, consider investments in Tool Room for manufacturing of Mould and Dies etc. as eligible investments under Capital Investment.
Another change incorporated is allowing one more year over and above two years, permitted for informing by beneficiaries about establishment of additional manufacturing facility.
Revision of the last date of submission of filing the claim and refund of excess incentive by the beneficiary on account of discrepancy between statutory compliance and records provided at the time of filing of claims, if any.
Other changes incorporated are site visit by the Administrative Ministry, Rollover of Bank Guarantee and appropriate changes in Annexures to the Scheme Guidelines.
In pursuance of the Prime Minister’s clarion call for “Atmanirbhar Bharat” to bring manufacturing to the centre stage and emphasize its significance in driving India’s growth and creating jobs, the PLI Scheme for White Goods for the manufacture of components and sub-assemblies of ACs and LED Lights was approved by the Union Cabinet chaired by the Prime Minister on April 7, 2021.
The scheme is to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29 and has an outlay of Rs 6,238 crore. The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on April 16, 2021. The scheme guidelines were published on June 4, 2021. Based on further stakeholder consultations for smooth implementation of the scheme, two corrigenda to the Scheme Guidelines were issued on August 16, 2021 and February 24, 2022, respectively.
The scheme is operational now. Out of 64 selected beneficiaries, 15 beneficiaries, who have opted for the gestation period up to March 31, 2022, have started commercial production. The rest of the beneficiaries who have opted for the Gestation period up to March 31, 2023, are at different stages of implementation.
The PLI Scheme for White Goods is designed to create a complete component ecosystem for the Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. Domestic Value addition is expected to grow from the current 15-20% to 75-80%

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