LG Electronics India Limited (LGEIL) has been granted an eligibility certificate by the Directorate of Industries, Government of Maharashtra, approving incentives worth ₹705.74 crore under the state's Electronics Policy 2016. The certificate validates the ₹705.74 crore investment made by the company between November 1, 2017, and October 30, 2024, for its mega-expansion project at the Ranjangaon manufacturing facility in Pune. With the investment phase now complete, the incentives package is equivalent to the approved capital outlay for the unit's expansion.
The approval allows LG Electronics India to accrue annual incentives of ₹47.04 crore over a 15-year period, starting from May 1, 2025, and extending to April 30, 2040. The incentive package includes several benefits, such as refunds on State Goods and Services Tax (SGST) paid on goods manufactured at the Pune facility and sold and consumed within Maharashtra. Additionally, the company will receive exemptions from electricity duty and stamp duty, power tariff subsidies, refunds on the employer's contribution to the Employees' Provident Fund (EPF), and exemption from property tax.
According to LG Electronics India, these incentives will significantly support its manufacturing operations in the state, providing long-term revenue visibility and optimizing its cost structure over the specified period. The incentives are tied to the Ranjangaon facility, formalizing state-level fiscal support following the completion of the investment phase.
Atul Khanna, Chief Accounting Officer of LG Electronics India Limited, expressed gratitude to the Government of Maharashtra for the recognition. He stated that the eligibility certificate formally validates the company's capital investments and lays a strong foundation for LG Electronics' continued growth in India. Khanna also emphasized that the incentives would enhance the company's operational efficiency and cost competitiveness, enabling them to deliver innovative technology to Indian households while expanding exports.
The approval reinforces LG Electronics' alignment with the "Make in India" initiative and its commitment to strengthening its manufacturing presence in the country. The incentives are expected to lower operating expenses and provide predictability regarding cost-related benefits throughout the scheme's duration. The company has confirmed that the incentives are linked to its manufacturing operations in Maharashtra and will apply throughout the policy period.
