Applications of certain companies for claiming incentives under the production linked incentive (PLI) scheme for the white goods (AC and LED lights) are under examination and there is no delay in disbursement, an official statement said on Wednesday.
The Department for Promotion of Industry and Internal Trade (DPIIT) said that investors were given the option to choose one of the two gestation period - up to March 2022 (one year) and up to March 2023 (two years).
All 15 projects -- companies which have opted for gestation period 2021-22 -- have been commissioned.
"Companies opting for one year of gestation period are eligible for PLI in the current year (2023-24) based on achieving the threshold investment and net incremental sales in 2022-23. Their online applications are under examination by the PMA (project management agency). The PLI will be disbursed by March 2024. There is no delay in PLI disbursement under the scheme," it said.
The scheme has attracted a mix of multinational and domestic companies committing to develop a robust component ecosystem in India.
It said that 13 foreign-owned companies (Daikin, Panasonic, Mitsubishi, Hitachi, Nidec, LG and Met Tube ) have committed to invest Rs 2,090 crore, about 30 per cent of total committed investments.
The PLI scheme for white goods is being implemented over 2021-22 to 2028-29 with an outlay of Rs 6,238 crore.
The DPIIT is implementing this scheme out of the 14 PLI schemes of the government.
IFCI Ltd (a public finance institution) has been selected as PMA for the white gods scheme.
"A central design aspect of the scheme is that it does not incentivise production of finished goods. Only manufacturing of components and sub-assemblies are incentivized under the Scheme. It will lead to an increase in domestic value addition from 20-25 per cent to 75-80 per cent at the end of the scheme," it added.
The DPIIT said that 64 applicants with committed investments of Rs 6,766 crore have been approved as beneficiaries under the scheme.