White goods PLI scheme adds 18 companies Rs3,516-cr investments in third round

The third round roll-out of Production-linked Incentive scheme for investments in the manufacture of white goods, i.e, air-conditioners and LED lights, saw 18 new companies committing investments of Rs2,299 crore and six existing PLI beneficiary companies proposing additional investments to the tune of Rs1,217 crore.

The combined investment of Rs3,516 crore includes Rs3,260 crore investment by 15 air-conditioner manufacturers, with the remaining Rs256 crore coming from nine LED light manufacturing companies.

So far, a total of 84 companies have committed investments of Rs10,478 crore under the PLI scheme for white goods (ACs and LED lights and components), with potential additional production worth Rs1,72,663 crore during the duration of the scheme.

The third round beneficiaries of the PLI scheme were selected from a total of 38 on-line applications. These included 10 manufacturers of components of air-conditioners and 8 manufacturers of LED lights.

In addition, 6 existing PLI beneficiaries came up with higher investment plans, committing an additional Rs1,217 crore investment.

Thirteen applicants, including two existing beneficiaries, have been referred to the Committee of Experts (CoE) for review and recommendations. One of the applicants withdrew application and opted out of the scheme.

The PLI scheme for air-conditioners is expected to lead to increased production of components like compressors, copper tubes, grooved control assemblies for IDU or ODU, heat exchangers and BLDC motors among others. 

LED lights manufacturing will lead to local production of LED chip packaging, LED drivers, LED engines, LED light management systems and metallised films for capacitors etc. 

The PLI scheme for air conditioners and LED lights started in FY22, with an initial outlay of Rs6,238 crore, will run till FY29.

The scheme offers incentives of 6 to 4 per cent on a reducing basis on incremental sales for a period of five years, with a gestation period of one year.

The PLI scheme is expected to result in an increase in domestic value addition from 15-20 per cent to 75-80 per cent.