New Delhi: More than 50 companies have applied for incentives (pls) linked for AC and LEDs, proposing investment around Rs 6,000 Crore in the manufacture of components for ACS and LED lights.
Most investments are expected to occur in two-three years and, after that, the production of local components for ACS and LED lights is set to start, said Chairman of the FICCI Electronic Manufacturing Committee.
This will not only help save foreign currencies, because the majority of components in ACS and LED lights are imported from countries such as China and Taiwan, but also create fresh job opportunities.
The PLI scheme has been designed to create a healthy ecosystem component for ACS and LEDs in the country and make India an integral part of the global supply chain.
According to the government, this scheme will extend 4-6% incentives in incremental sales for five years, after the base year and one year of pregnancy.
“Encourage to see industrial responses against the PLI scheme for manufacturing components at AC and LEDs.
From the application received, it seems that this industry stands to get an investment of almost Rs 6,000 Crore where around Rs 5,000 Crore to AC and RS 1,000 Crore to LED,” Sharma , which is President and CEO of Panasonic India & South Asia, said.
Sharma is involved in the process as part of its role in the body of the FICCI industry.
The government said the PLI scheme would lead to increased value-added in India from 20% to 80-85%, while developing a strong component ecosystem.
The company’s selection that will be given the benefits of the PLI will be carried out to provide incentives to the manufacture of components or sub-assemblies which are currently not produced in this country.
Mere finished goods assemblies will not be given incentives, the government said.