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The Production Linked Incentive (PLI) scheme aims to promote manufacturing in the white goods sector, specifically Air Conditioners (AC) and LED lights. The Department for Promotion of Industry and Internal Trade (DPIIT) oversees the implementation of this scheme, which spans from 2021-22 to 2028-29, with a total outlay of Rs 6,238 crore.
Gestation Period Options and Commissioning of Projects
Investors under the PLI scheme were given the option to select gestation periods, either up to March 2022 (one year) or up to March 2023 (two years). All 15 projects companies that opted for the gestation period ending in 2021-22 have been successfully commissioned.
Examination of Applications and Disbursement of Incentives
Companies opting for a one-year gestation period are eligible for PLI in the current year (2023-24) based on meeting investment and sales thresholds in the preceding year (2022-23). Their applications are currently under examination by the Project Management Agency (PMA), with disbursement of PLI expected by March 2024. There have been no delays reported in this disbursement process.
Composition of Investors and Investments
The PLI scheme has attracted a diverse range of investors, including both multinational and domestic companies. Notably, 13 foreign-owned companies have committed to investing Rs 2,090 crore, which accounts for approximately 30% of the total committed investments.
Implementation Oversight and Beneficiaries
The DPIIT is responsible for implementing the PLI scheme for white goods, out of the 14 PLI schemes initiated by the government. IFCI Ltd, a public finance institution, has been selected as the Project Management Agency (PMA) for the white goods scheme.
Objectives and Design Features
A central aspect of the PLI scheme is its focus on incentivizing the manufacturing of components and sub-assemblies rather than finished goods. This strategic approach aims to enhance domestic value addition significantly, projecting an increase from 20-25% to 75-80% by the conclusion of the scheme.
Multiple Choice Questions (MCQs) with Answers:
- Which department oversees the implementation of the Production Linked Incentive (PLI) scheme for white goods?
- A) Ministry of Commerce
- B) DPIIT (Department for Promotion of Industry and Internal Trade)
- C) Ministry of Finance
- D) NITI Aayog
- How many gestation period options were provided to investors under the PLI scheme for white goods?
- A) One
- B) Two
- C) Three
- D) Four
- What is the main focus of the PLI scheme for white goods regarding incentivization?
- A) Production of finished goods
- B) Export-oriented manufacturing
- C) Manufacturing of components and sub-assemblies
- D) Research and development
- Which institution has been selected as the Project Management Agency (PMA) for the white goods scheme?
- A) IFCI Ltd
- B) RBI (Reserve Bank of India)
- C) SEBI (Securities and Exchange Board of India)
- D) NABARD (National Bank for Agriculture and Rural Development)
- What is the projected increase in domestic value addition by the end of the PLI scheme for white goods?
- A) 10-15%
- B) 30-35%
- C) 50-55%
- D) 75-80%