Govt to Disburse Fiscal Incentives for White Goods Production-Linked Incentive in Q4
New Delhi: The government is likely to start disbursement of fiscal incentives under production-linked incentive (PLI) for white goods in the last quarter of this financial year as certain selected beneficiary firms have started production, a top official said on Tuesday. The move of the government aims to encourage domestic manufacturing of air conditioners and LED light components in the country.
“In the last quarter (January-March), we are expecting some disbursements,” department for promotion of industry and internal trade (DPIIT) secretary Rajesh Kumar Singh told reporters on the sidelines of the India Korea Business Partnership Forum meeting here.
Of the 64 selected beneficiaries of the PLI scheme, 15 have started production. These 15 beneficiaries had opted for a gestation period of up to March 31, 2022 and rest of the beneficiaries who opted for gestation period of up to March 31, 2023 are at different stages of implementation. The scheme is to be implemented over a seven-year period, from 2021-22 to 2028-29 and has an outlay of Rs 6,238 crore.
“In the PLI sectors like auto and white goods, the gestation period is longer and companies have to cross the investment threshold to qualify for the incentives, which takes time. This is the design of the scheme and investments and production have to be front-loaded and then benefits are provided,” the secretary said.
Till March, Rs 2,900 crore worth incentives have been disbursed under the Rs 1.98 lakh crore PLI scheme. Approval of the Rs 1,000 crore additional incentives for this year has been granted for companies engaged in electronics manufacturing. “Some of the sectors in the PLI scheme like electronics, mobile manufacturing, pharma and food processing are doing well while in some sectors like textiles, certain correction is needed,” he said.
On semiconductor manufacturing, he further said that the government is encouraging the private sector to come forward and take advantage of opportunities in the semiconductor sector in India. “In semiconductors, talks are on and we are encouraging private sector partnerships to come forward and take advantage of the opportunities,” Singh said.
