New Delhi, November 7 (Language) Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), said on Tuesday that the government is planning to launch a production-based incentive scheme for large electronic products (white goods) like air conditioners used in homes. Under this, financial incentives can start giving from the fourth quarter. Some companies have started producing these items.
The Production Linked Incentive (PLI) Scheme for Electronic Goods aims to encourage domestic manufacturing of air conditioners and LED light appliances.
“In the last quarter (January-March), we are expecting disbursement of some fiscal incentives under PLI,” Singh told reporters on the sidelines of the India-South Korea Business Partnership Forum meeting here.
Under the PLI scheme, 15 out of 64 beneficiary units have started production. These 15 beneficiaries had opted for the period till March 31, 2022. The remaining beneficiaries had opted for the period till March 31, 2023. They are in various stages of project implementation.
The scheme is to be implemented over a period of seven years from 2021-22 to 2028-29. An expenditure of Rs 6,238 crore is estimated on this.
Singh also said that PLI sectors like automobile and ‘white goods’ have longer project implementation periods. Companies have to meet investment thresholds to be eligible for incentives, and this takes time.
It is noteworthy that under the total PLI scheme of Rs 1.98 lakh crore, Rs 2,900 crore has been distributed as incentive till March.
This year, additional incentive of Rs 1,000 crore has been approved for companies engaged in electronics manufacturing.
The Secretary said that some sectors like electronics, mobile manufacturing, pharmaceuticals and food processing are performing well under the PLI scheme, while sectors like textiles need some improvement.
On semiconductor manufacturing, he said that the government is encouraging the private sector to come forward and take advantage of the opportunities in the semiconductor sector in India.
Earlier, in his address at the meeting, Singh said the $10 billion semiconductor manufacturing plan has huge opportunities for South Korean companies in India.
South Korea is the world’s second largest semiconductor manufacturer with 17 percent share. It is also a leader in ‘memory chips’ and displays.
On taking bilateral trade between India and South Korea to US$ 50 billion, the Secretary said there are export opportunities for domestic sectors like light engineering and pharmaceuticals.
Bilateral trade between the two countries stood at $27.9 billion in 2022-23, which was $25.6 billion in 2021-22.