Cost-Plus method adopted for calculation of sales prices
On the basis of various requests and suggestions received from Production Linked Incentive (PLI) Scheme for White Goods Beneficiaries as well as Industry Associations, further changes in the PLI for White Goods (ACs and LED Lights) Guidelines have been made with a view to simplify the operation of the Rs.6,238 crore Scheme as well as to improve the ease of doing business.
These are:
a. Adoption of Cost-Plus method in place of CUP (comparable uncontrolled price) method for calculation of sales prices in case of captive consumption or supplies to group companies. It also required amendment in the definition of ‘Arm’ length’;
b. Consider investments in Tool room for manufacturing of Mould & Dies etc. as eligible investment under Capital Investment;
c. Allowing one more year over and above two years, permitted for informing by beneficiaries about establishment of additional manufacturing facility;
d. Revision of last date of submission of filing the claim and refund of excess incentive by the beneficiary on account of discrepancy between statutory compliance and records provided at the time of filing of claim(s), if any;
e. Site visit by Administrative Ministry;
f. Roll over of Bank Guarantee;
g. Appropriate changes in Annexures to the Scheme Guidelines
In pursuance of Prime Minister’s clarion call for “Atmanirbhar Bharat” to bring manufacturing at the center stage and emphasize its significance in driving India’s growth and creating jobs, PLI Scheme for White Goods for manufacture of components and sub-assemblies of ACs and LED Lights was approved by the Union Cabinet on 7 April 2021.
The scheme is to be implemented over a seven years period, from FY 2021-22 to FY 2028-29 and has an outlay of Rs.6,238 crore. The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on 16 April 2021.
The scheme guidelines were published on 4 June 2021. Based on further stakeholder consultations for smooth implementation of the scheme, two corrigenda to the Scheme Guidelines were issued on 16 August 2021 and 24 February 2022, respectively.
The scheme is operational now. Out of 64 selected beneficiaries, 15 beneficiaries, who have opted for the gestation period up to 31st March, 2022, have started commercial production. Rest of the beneficiaries who have opted for Gestation period upto 31st March, 2023 are at different stages of implementation.
The PLI Scheme for White Goods is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. Domestic Value addition is expected to grow from the current 15-20% to 75-80%. Fiinews.com
