No delay in white goods PLI disbursement: Govt

The applications of certain companies for claiming incentives under the production linked incentive (PLI) scheme for the white goods (AC and LED lights) are under examination and there is no delay in disbursement, commerce and industry ministry said Thursday.

It said that 13 foreign owned companies -Daikin, Panasonic, Mitsubishi, Hitachi, Nidec, LG and Met Tube- have committed to invest Rs 2,090 crore, about 30% of total committed investments.

The PLI scheme for white goods is being implemented over 2021-22 to 2028-29 with an outlay of Rs 6,238 crore.

As per the ministry, investors were given the option to choose one of the two gestation period – up to March 2022 (one year) and up to March 2023 (two years) and all 15 projects (companies who have opted for gestation period 2021-22) have been commissioned.

Companies opting for one year of gestation period are eligible for PLI in the current year (2023-24) based on achieving the threshold investment and net incremental sales in 2022-23.

“Their online applications are under examination by the PMA (project management agency). The PLI will be disbursed by March 2024. There is no delay in PLI disbursement under the scheme,” the ministry said.IFCI Ltd (a public finance institution) has been selected as PMA for the white goods scheme.A central design aspect of the scheme is that it does not incentivise production of finished goods. Only manufacturing of components and sub-assemblies are incentivized under the Scheme. It will lead to an increase in domestic value addition to 75-80% from 20-25% at the end of the scheme, according to the government.

The ministry said that 64 applicants with committed investment of Rs 6,766 crore have been approved as beneficiaries under the PLI scheme.

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