August 18, 2021
Entities unable to raise requisite investment will refund the incentive till date along with compounded interest.
Pre-qualification criteria will now include audited financial records from 2020-21.
Net incremental sales will be calculated either with FY21 as the base year or through the net sales turnovers of products.
Tier-II and Tier-III markets contribute to 10-20% of white goods demands and are new target markets for sellers.
The Production Linked Incentive (PLI) scheme for the white goods sector has been revised by the Department for Promotion of Industry and Internal Trade (DPIIT). As per the FAQ document released by the Department, the following are some of the revisions made:
The addenda and modifications will look to increase competitiveness within the sector and enhance the manufacturing capabilities of the entities deemed eligible. The PLI scheme currently has an allocation of US$ 855 million (Rs 6,238 crores) which will be applicable over a five-year period. Experts project that the domestic Appliance and Consumer Electronics (ACE) industry will grow to US$ $21.18 billion by 2025, and that the LED market will contribute to 12% of the Compound annual growth rate (CAGR).
The ACE industry is one of immense potential with the increase of internet penetration and smartphone/smart-device use. Tier-II and Tier-III markets constitute close to 10-20% of consumer durable sales, giving sellers more incentive to cater to these nascent markets. The government’s prioritisation of infrastructure development in the rural regions through the Gati Shakti Plan could help increase rural market penetration for sellers of white goods. Furthermore, it is imperative that entities understand the requirements of individual market demographics and customise their offerings accordingly. Responding to the need of the hour, it is also imperative that white goods be imbued with energy efficiency.