New Delhi: LG Electronics India Limited (LGEIL) has received an Eligibility Certificate from the Directorate of Industries, Government of Maharashtra, for incentives worth ₹705.74 crore under its LG Electronics India Mega Expansion Project.
The approval has been granted under the Maharashtra Electronics Policy 2016, validating the company’s investment made between November 1, 2017, and October 30, 2024.
The Eligibility Certificate formally recognises LG Electronics India Limited’s capital investment of ₹705.74 crore towards the expansion of its Ranjangaon manufacturing facility in Pune, Maharashtra, undertaken as part of the LG Electronics India Mega Expansion Project.
LG Electronics India Mega Expansion Project Validated Under Maharashtra Electronics Policy
Following the completion of the investment phase, LGEIL has secured a comprehensive incentive package equivalent to the approved investment amount.
Under this framework, the company will accrue annual incentives of ₹47.04 crore over a 15-year period, commencing from May 1, 2025, through April 30, 2040.
The incentive package associated with the LG Electronics India Mega Expansion Project includes multiple fiscal and operational benefits aimed at strengthening manufacturing operations in the state.
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Incentive Structure for LG Electronics India Mega Expansion Project
The approved incentives comprise:
- Fiscal Benefits: Refunds on State Goods and Services Tax (SGST) paid on goods manufactured at the Pune facility and sold and consumed within Maharashtra
- Operational Exemptions: Exemptions from electricity duty and stamp duty
- Subsidies: Power tariff subsidies and refunds on the employer’s contribution to the Employees’ Provident Fund (EPF)
- Property Tax Relief: Exemption from property tax for the manufacturing facility
Alignment with Make in India and Manufacturing Growth
The certification reinforces LG Electronics India Limited’s alignment with the Government of India’s Make in India initiative and highlights its continued commitment to strengthening its manufacturing footprint in the country.
The long-term incentive structure offers revenue predictability and supports sustained manufacturing operations in Maharashtra.
Commenting on the development, Atul Khanna, Chief Accounting Officer, LG Electronics India Limited, 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 lays a strong foundation for LG Electronics’ continued growth story in India.
It reinforces our commitment to the Indian market and the ‘Make in India’ vision, while enabling us to enhance operational efficiency and cost competitiveness.”
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Long-Term Impact on Operations
With the validation of its ₹705.74 crore investment in the Ranjangaon facility, LGEIL is positioned to optimise its cost structure and sustain manufacturing operations over the long term.
The 15-year incentive validity ensures continued institutional support from the Maharashtra Government for the LG Electronics India Mega Expansion Project, strengthening the company’s operational stability in the region.
