42 companies to invest around Rs4,614 cr under PLI scheme for white goods
08 Nov 2021
The government has selected 42 companies under the Production Linked Incentive (PLI) Scheme for White Goods, involving total investments of around Rs4,614 crore, creating additional direct employment of about 44,000 people.
Of these, 26 companies will invest around Rs3,898 crore for manufacturing air-conditioner components, while 16 companies will invest Rs716 crore for LED component manufacturing.
These investments are expected to result in net incremental production of products valued more than Rs81,000 crore
The Department for Promotion of Industry and Internal Trade (DPIIT) is coordinating the implementation of all PLI schemes. DPIIT is also the nodal department for the PLI scheme for white goods – air-conditioners and LED lights sector - with an outlay of Rs6,238 crore.
The union cabinet chaired by Prime Minister Narendra Modi approved the PLI scheme for manufacture of components and sub-assemblies of ACs and LED lights on 7 April 2021. The scheme is to be implemented over a seven year period, from FY2021-22 to FY2028-29 and has an outlay of Rs6,238 crore. The scheme was notified by DPIIT on 16 April 2021 and the scheme guidelines were published on 4 June 2021. Some modifications to the guidelines were issued on 16 August 2021. Applicants were given flexibility to choose the gestation period either up to March 2022 or up to March 2023.
Applications for the scheme were invited from 15 June 2021 to 15 September 2021. A total of 52 companies filed applications with committed investment of Rs5,858 crore under the PLI scheme.
After evaluation of all the applications, 42 applicants with committed investment of Rs4,614 crore have been provisionally selected as beneficiaries under the PLI scheme. The selected applicants include 26 for air-conditioner manufacturing with committed investments of Rs3,898 crore and 16 for LED Lights manufacturing with committed investments of Rs716 crore.
Six applicants proposing FDI from countries sharing land border with India have been advised to submit approval for FDI.
Four applicants are being referred to the Committee of Experts (CoE) for examination and its recommendations.
The approved investments of Rs4,614 crore are likely to generate net incremental production of around Rs81,254 crore and direct employment of about 44,000 people.
The investments in air-conditioners will lead to manufacturing components across the complete value chain, including components which are not manufactured in India with sufficient quantity. At present, there is insignificant manufacturing of certain high value components of ACs like Compressors, copper tubing and aluminium stock for foils. Many other components like control assemblies for indoor units (IDU) or outdoor units (ODU), display units, brushless direct current motors, valves etc. are not manufactured in enough quantity. All these components will now be manufactured in India in significant quantities. Similarly, LED chip packaging, LED drivers, LED engines, LED light management systems, PCBs (including metal clad PCBs and wire wound inductors etc), will be manufactured in India in high quantities. This is a huge step forward for `Atmanirbhar Bharat’ in important sectors of economy.
In pursuance of the prime minister’s clarion call for ‘Atmanirbhar Bharat’ to bring manufacturing at the centre stage and emphasise its significance in driving India’s growth and creating jobs, Government of India has given approval for Production-Linked Incentive (PLI) Scheme in 13 key sectors with total outlay of Rs1,97,291crore.