Question: On 7 April 2021, the Union Cabinet approved the Production Related Incentive Scheme (PLI) for white goods (air conditioners and LED lights) with budgetary allocation of how much amount?
(a) Rs 5,423 crore
(b) Rs 5,670 crore
(c) Rs 6,238 crore
(d) Rs 6,385 crore
Answer – (c)
Related facts
- On 7 April 2021, the Union Cabinet approved the Production Related Incentive Scheme (PLI) for white goods (airconditioners and LED lights) with budget aryal location of Rs 6,238 crore.
- The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
- It is designed to create complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.
- The PLI Scheme for White Goods shall extend an incentive of 4% to 6% on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of Air Conditioners and LED Lights.
- Speculations
- It is estimated that over the period of five years, the PLI Scheme will lead to incremental investment of Rs. 7,920 Crore, incremental Production worth Rs. 1,68,000 Crore, exports worth Rs 64,400 Crore, earn direct and indirect revenues of Rs 49,300 crore and create additional four lakh direct and indirect employment opportunities.