LG Electronics India receives Eligibility Certificate from Maharashtra Government for incentives of ₹705.74 Crore under Mega Expansion Project
LG Electronics India announced that it has successfully secured an eligibility certificate from the Directorate of Industries, Government of Maharashtra. The aforesaid certificate has been issued under the state’s Electronics Policy 2016, which validates an investment of ₹705.74 crore made by LGEIL between November 1, 2017, and October 30, 2024.
After completing the investment phase of its manufacturing journey in India, LGEIL has secured a comprehensive package of incentives worth ₹705.74 crore. This is equivalent to the approved investment amount for the expansion of its Ranjangaon manufacturing unit in Pune, Maharashtra.
Strategic Investment and Realization of Benefits
This milestone reinforces the company’s alignment with the “Make in India” initiative and its commitment to the enhancing its manufacturing footprint in India. This will enable LGEIL to accrue an annual incentive of ₹47.04 crore over a 15-year period, from May 1, 2025, to April 30, 2040.
The incentive package includes:
- Fiscal Benefits: Refunds on State Goods and Services Tax (SGST) paid on goods manufactured at LG Electronics India’s Pune unit and sold and consumed within Maharashtra.
- Operational Exemptions: Exemption from electricity duty and stamp duty for the facility’s operations.
- Subsidies: Power tariff subsidies and refunds on the employer’s contribution to the Employees’ Provident Fund (EPF).
- Property Tax Relief: Exemption from property tax.
Commenting on this development, Chief Accounting Officer, LG Electronics India Limited, Mr. Atul Khanna said, “We are grateful to the Government of Maharashtra for this recognition. This eligibility certificate serves as a formal validation of our capital investments and also lays a strong foundation for LG Electronics continued growth story in India. It reinforces our unwavering commitment to the Indian market and the ‘Make in India’ vision, along with yielding us the leverage to expand exports. 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.”
Impact on Operations
This approval provides LGEIL with a long-term revenue predictability and enhanced operational margins. By validating the ₹705.74 crore infused into the Ranjangaon facility, the company is now strategically positioned to optimize its cost structure within the premium appliance segment while navigating external economic factors. The 15-year validity also ensure a sustained support from the Maharashtra Government for LGEIL’s manufacturing operations in the region.
