Cabinet approves Rs 6,238 crore PLI scheme for air-conditioners, LED lights

Local manufacturers may delay investments in building capacity to assemble

The Union Cabinet today approved the production-linked incentive (PLI) scheme for air conditioners (ACs) and light-emitting diode (LED) lights with an aim to boost the local component supply ecosystem for these items. Under the new PLI, a sum of Rs 6,238 crore has been approved as incentives to selected manufacturers over a five-year period starting 2021-22.

As per the government's initial estimates, the scheme has the potential to attract Rs 7,920 crore of additional investment into the two sectors, creating 400,000 jobs, directly and indirectly. These are expected to translate into Rs 168,000 crore of incremental production of goods, including