LG Electronics India Secures Major Incentive Package for Pune Manufacturing Expansion
In a significant development for India's electronics manufacturing sector, LG Electronics India Limited (LGEIL) has successfully obtained an eligibility certificate from the Directorate of Industries, Government of Maharashtra. This crucial certification, granted under the state's Electronics Policy 2016, validates the company's substantial investment of ₹705.74 crore made between November 1, 2017, and October 30, 2024.
Substantial Investment Validated for Manufacturing Growth
The certification marks the completion of LG Electronics India's investment phase for expanding its manufacturing capabilities at the Ranjangaon facility in Pune, Maharashtra. According to an official press release, this milestone represents a major step forward in the company's manufacturing journey within India and aligns perfectly with the national "Make in India" initiative.
"This eligibility certificate serves as formal validation of our capital investments and lays a strong foundation for LG Electronics' continued growth story in India," stated Atul Khanna, Chief Accounting Officer of LGEIL. "This incentive will directly enhance our operational efficiency and cost competitiveness, allowing us to continue delivering world-class, innovative technology to Indian households while deepening our contribution to the local economy."
Comprehensive 15-Year Incentive Package Details
The approved investment qualifies LG Electronics India for a comprehensive incentive package worth ₹705.74 crore, equivalent to the total investment amount. This package will be disbursed over a 15-year period from May 1, 2025, to April 30, 2040, providing the company with annual incentives of approximately ₹47.04 crore.
The extensive incentive package includes multiple benefits designed to support manufacturing operations:
- Refunds on State Goods and Services Tax (SGST) paid on goods manufactured at the Pune unit and sold within Maharashtra
- Exemption from electricity duty for facility operations
- Stamp duty exemptions
- Power tariff subsidies
- Refunds on employer's contribution to the Employees' Provident Fund (EPF)
- Property tax exemptions
Strategic Alignment with Make in India Initiative
This development reinforces LG Electronics India's strategic commitment to strengthening its manufacturing footprint in the country. The company's substantial investment and subsequent qualification for state incentives demonstrate a long-term vision for growth within India's evolving electronics manufacturing ecosystem.
The Maharashtra Electronics Policy 2016 has proven instrumental in attracting and retaining major electronics manufacturers in the state, with LG Electronics India becoming one of the significant beneficiaries of this forward-looking policy framework. This achievement not only benefits the company but also contributes to employment generation, skill development, and technological advancement within the region.
As India continues to position itself as a global manufacturing hub, such partnerships between multinational corporations and state governments create a win-win scenario for economic growth, technological innovation, and job creation across the electronics value chain.
