42 companies selected under PLI Scheme for White Goods with committed investments of Rs 4,614 crore

42 companies selected under PLI Scheme for White Goods with committed investments of Rs 4,614 crore

New Delhi, November 4, 2021

As many as 42 applicants with committed investments of Rs 4,614 crore have been provisionally selected as beneficiaries under the Production-Linked Incentive (PLI) Scheme for White Goods for the manufacture of components and sub-assemblies of Air-conditioners (ACs) and LED Lights.

The scheme, approved by the Union Cabinet chaired by Prime Minister Narendra Modi on April 7 this year, will be implemented over seven years, from FY2021-22 to FY2028-29, and has an outlay of Rs 6,238 crore.

The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, on April 16 with the guidelines published on June 4. Some modifications to the guidelines were issued on August 16. The applicants were given the flexibility to choose the gestation period either up to March 2022 or up to March 2023.

Applications for the scheme were invited from June 15 to September 15. A total 52 companies filed their application with committed investment of Rs 5,858 crore under the scheme, an official press release said.

"After evaluation of all the applications, 42 applicants with committed investments of Rs 4,614 crore have been provisionally selected as beneficiaries under the PLI scheme. The selected applicants include 26 for Air Conditioner manufacturing with committed investments of Rs 3,898 crore and 16 for LED Lights manufacturing with committed investments of Rs 716 crore," the release said.

Six applicants proposing FDI from countries sharing a land border with India have been advised to submit approval for FDI in terms of Press Note 3 (2020) dated 17.4.20 for consideration of approval under the PLI Scheme.

Four applicants are being referred to the Committee of Experts (CoE) for examination and its recommendations.

The release said the approved investments of Rs 4,614 crore are likely to generate net incremental production of around Rs 81,254 crore and direct employment of about 44,000 people.

According to it, the investments in Air Conditioners will lead to manufacturing components across the complete value chain including components that are not manufactured in India in sufficient quantity. At present, certain high-value components of ACs like compressors, copper tubing and aluminium stock for foils fall in this category.

Many other components like control assemblies for indoor units (IDU) or outdoor units (ODU), display units, brushless direct current motors, valves etc. are also not manufactured in sufficient quantity.

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, the release said.

Overall, the Government has approved PLI schemes for 13 key sectors with a total outlay of Rs. 1,97,291 crore.

The DPIIT is coordinating the implementation of all the PLI Schemes. It is also the nodal department for the PLI Scheme for White Goods.

NNN

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