Synopsis
On January 20, it was announced that 24 companies will invest Rs 3,516 crore under the PLI scheme, boosting the production of AC and LED components in India. This initiative is expected to enhance manufacturing capabilities and economic growth in the sector.Key Takeaways
- 24 companies committed to invest Rs 3,516 crore.
- The PLI scheme will enhance production of AC and LED lights.
- A total of 84 companies are involved in the PLI scheme for White Goods.
- Investment expected to increase domestic value addition from 15-20% to 75-80%.
- Manufacturing of key components like compressors and LED drivers will be ramped up.
New Delhi, Jan 20 (NationPress) With 24 beneficiary companies pledging an investment of Rs 3,516 crore during the third phase, the government’s production-linked incentive (PLI) scheme is set to significantly enhance the production of components for ACs and LED lights across India, as stated by the Commerce and Industry Ministry on Monday.
During the third phase of the online application process for the PLI scheme, a total of 38 applications were submitted. Following a thorough evaluation, the government has provisionally chosen 18 new companies. This selection comprises 10 manufacturers of Air Conditioner components and 8 producers of LED Lights, with a committed investment totaling Rs 2,299 crore, according to the statement.
The newly selected companies include Voltas Components, Jupiter Aluminium, SMEL Steel, Lumax, Intelux Electronics, and Neolite.
Moreover, six existing beneficiaries under the PLI scheme have been provisionally upgraded to higher investment categories, promising an additional investment of Rs 1,217 crore. Notable companies in this group include Hindalco, LG Electronics, Blue Star, and Voltas.
In total, 84 companies participating in the PLI Scheme for White Goods are anticipated to contribute investments of Rs 10,478 crore, leading to a production output valued at Rs 1,72,663 crore, according to the statement.
This initiative is expected to strengthen manufacturing capabilities and foster economic growth within the sector. For air conditioners, companies will be producing components such as compressors, copper tubes (both plain and/or grooved 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 will be manufactured domestically.
The Union Cabinet granted approval for the PLI Scheme for White Goods (covering Air Conditioners and LED lights) to be executed from FY 2021-22 to FY 2028-29, with a financial outlay of Rs 6,238 crore on April 7, 2021. The scheme was officially announced by DPIIT on April 16, 2021.
The PLI Scheme for White Goods aims to establish a robust component ecosystem for the air conditioner and LED lights industry in India, integrating the country into global supply chains. The scheme offers an incentive ranging from 6 percent to 4 percent on a decreasing scale based on incremental sales for a period of 5 years, following the base year, along with a gestation period of one year. It is projected that domestic value addition will rise from the current 15-20 percent to 75-80 percent.
