Finance Minister Nirmala Sitharaman, on June 28, announced that the duration of the Production-Linked Incentive (PLI) mass production program had been extended by one year.
The program would run from 2020-21 and continue for a period of five years. The Minister of Finance said the program would continue until 2025-26.
Participating companies will receive any five years to meet their production targets under the program.
“The stimulus was effective for the last year of 2019-20. However, companies were unable to raise funds for the sale due to the closure of COVID-19,” he added.
In November 2020, the Union Cabinet approved the 10-sector PLI plan.
These are pharmacies, automotive and automotive components, telecom and telecommunications products, advanced cell battery, textiles, food products, solar modules, white goods, and special metal. Laptops and IT hardware were added to this list in February 2021.
The PLI white goods program came into effect on April 1, 2021. Under this program, qualified players working in the air-conditioner and LED production facility will be awarded incentives worth R23,238 million over a five-year period.
In addition, the Laptops and IT Hardware scheme has a total size of approximately Rs 7,350 crore over four years.
It also puts an encouraging 4-6 per cent increase in additional sales made for the 2019-20 foundation year, five years. This means that companies will only be able to receive incentives if they exceed the basic production year numbers.
