Maharashtra government approval under Electronics Policy 2016 supports long-term growth and operational efficiency at the Ranjangaon facility
LG Electronics India or LGEIL has obtained an eligibility certificate from the Directorate of Industries, Government of Maharashtra, recognising its Rs 705.74 crore investment to expand its manufacturing facility in Ranjangaon, near Pune, according to media reports.
The certificate, issued under Maharashtra’s Electronics Policy 2016, covers the company’s investments made between 1 November 2017 and 30 October 2024. With this approval, LGEIL qualifies for an extensive incentive package matching the total investment in the Ranjangaon plant.
According to LGEIL, the incentives are set to provide benefits worth Rs 705.74 crore over a 15-year period, equating to an annual incentive of Rs 47.04 crore from 1 May 2025 to 30 April 2040. The package includes refunds of State Goods and Services Tax (SGST) on goods manufactured at the Pune facility and sold within Maharashtra, as well as exemptions from electricity duty and stamp duty.
Additional Benefits
Beyond these, the incentives also cover power tariff subsidies, refunds on the employer’s contribution to the Employees’ Provident Fund (EPF), and property tax exemptions for the manufacturing unit.
LGEIL said the approval strengthens its alignment with the Make in India initiative and underscores the company’s long-term commitment to expanding its manufacturing footprint in India. The incentives are expected to improve revenue predictability, enhance operational margins, and optimise costs within the premium appliances segment.
The 15-year validity of the package ensures continued policy support from the Maharashtra government for LGEIL’s operations in Ranjangaon, the company added.
Atul Khanna, Chief Accounting Officer of LG Electronics India, said that the incentive would directly boost the company’s operational efficiency and cost competitiveness, enabling it to continue providing world-class, innovative technology to Indian households while further contributing to the local economy.
