Guidelines for PLI scheme for white goods issued
    Date :05-Jun-2021

Guidelines for PLI scheme
INVESTMENTS made in land and building required for a project will not be covered under the production linked incentive (PLI) scheme for ACs and LED lights and these would not be considered for determining eligibility of a company to avail benefits of the programme.
This is part of the guidelines issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on Friday for the PLI scheme for promoting domestic manufacturing of white goods (only air conditioners and LED lights). Only eligible applicants can apply to avail the benefits of the scheme and the guidelines lay out the investment criteria for determining eligibility.
It said eligibility will be subject to achievement of thresholds of net incremental sales of the products for the respective financial year over the base year (2019-20) and cumulative incremental investment in the preceding fiscal. “Investment in land and building (including factory building or construction) required for the project or unit will not be covered under the scheme and therefore shall not be considered for determining eligibility under the scheme,” according to the guidelines.
Expenditure on consumables and raw material used for manufacturing shall not be considered as investment. “No second hand/used refurbished plant, machinery equipment, utilities shall be used to manufacture the eligible product,” the guidelines said.
In case an applicant does not meet criteria of threshold investment and threshold net incremental sales for any given year, it would not be eligible for disbursement of incentive for that particular fiscal. Investment will include expenditure incurred on new plant, machinery, R&D, and transfer of technology relating to facilities setup for products.