PLI in white goods to add domestic value; expecting 75-80% growth

Guwahati: In the second round of the PLI scheme in White Goods, 15 companies were chosen with a committed investment of Rs 1,368 crore.

Out of 15, six were chosen for manufacturing AC components with a total commitment of Rs 908 crore and nine for LED lighting components with a total commitment of Rs 460 crore.

And over the next five years, these 15 companies will produce a total of Rs 25,583 crore and employ an additional 4,000 people directly.

Anil Agrawal, Additional Secretary, DPIIT, stated today at a press conference in New Delhi that the domestic value addition in these segments is expected to increase from the current 15-20 percent to 75-80 percent as a result of PLI. He claimed that the PLI scheme, as well as other regulatory measures such as Quality Control Orders, Standards, and Labels, had significantly boosted Make in India and Atmanirbhar Bharat in ACs and LEDs.

The Committee of Experts (CoE) has referred four applicants for review and recommendations. The applicant information is included in Annexure.

In the first round of applications, 52 companies applied, and 46 applicants with a total committed investment of Rs 5,264 crore were chosen. Overall, 61 applicants approved in both rounds are expected to invest Rs 6,632 crore in the component manufacturing eco-system of the ACs and LED lights industries and generate approximately 46,368 direct job opportunities. Over a five-year period, the scheme is expected to result in the total production of components for ACs and LED lights worth approximately Rs 1,22,671 crore.

Companies will manufacture copper tubing, compressors, control assemblies for IDU or ODU, heat exchangers, and BLDC motors, among other components, for air conditioners. Similarly, LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems, and Metallized films for capacitors, among other things, will be made in India.

The PLI Scheme on White Goods is intended to create a complete component ecosystem for the Indian air conditioner and LED lighting industries, as well as to make India an integral part of global supply chains. The Scheme provides a 6% to 4% incentive on a decreasing basis on incremental sales for five (5) years following the base year and one year of gestation.

On April 7, 2021, the Union Cabinet approved the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights), which will run from FY 2021-22 to FY 2028-29 and cost Rs 6,238 crore.