A total of 84 companies under the production-linked investment (PLI) scheme for white goods (ACs and LED lights) are set to bring investment of Rs 10,478 crore, resulting in production worth Rs 1,72,663 crore, an official statement said on Monday.
In fact, with a total of 24 beneficiaries committing investment of Rs 3,516 crore in the third round, the PLI Scheme is poised to significantly boost the production of components of ACs & LED Lights across India.
In the third round of the on-line application window of the PLI Scheme, a total of 38 applications were received. After reviewing these applications, the government has provisionally selected 18 new companies. These companies include 10 manufacturers of components of Air Conditioners and 8 manufacturers of LED Lights, with committed investment of Rs 2,299 crore.
In addition, 6 existing PLI beneficiaries have been provisionally selected to upgrade to higher investment categories, committing an additional investment of Rs 1,217 crore.
As many as 13 applicants, including two existing applicants, are being referred to the Committee of Experts (CoE) for examination and its recommendations. The details of applicants are placed at Annexure. One of the applicants has decided to opt out from the scheme and has withdrawn the application.
This move is expected to bolster the manufacturing capabilities and economic growth in the sector. For Air Conditioners, companies will be manufacturing components like, compressors, copper tubes (plain and/or grooved control assemblies for IDU or ODU, Heat Exchangers and BLDC motors among others. Similarly, LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems and Metallized films for capacitors etc. will be manufactured in India.
The Union Cabinet had given approval to the PLI Scheme for White Goods to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 Crore on 7th April 2021. The Scheme was notified by DPIIT on 16.04.2021.
The PLI Scheme on White Goods is designed to create a robust component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
The Scheme extends an incentive of 6% to 4% on reducing basis on incremental sales for a period of five (5) years subsequent to the base year and one year of gestation period. Domestic Value Addition is expected to grow from the current 15-20% to 75-80%.