A total of 15 applicants with committed investment of Rs1,368 crore have been selected under the second round of the PLI scheme for white goods. The 15 applicants were selected after evaluation of the 19 applications received in the second round,
These include 6 for manufacturing ACs components with committed investments of Rs908 crore and 9 applicants for LED light components with committed investments of Rs460 crore.
The 15 companies will have total production worth Rs25,583 crore over five years and generate additional direct employment to 4,000 persons.
Four applicants are being referred to the Committee of Experts (CoE) for examination and its recommendations.
Speaking at a press conference in New Delhi on Tuesday, Anil Agrawal, additional secretary, DPIIT, said that the PLI scheme will result in a increase in domestic value addition in these segments from the current 15-20 per cent to 75-80 per cent. He said the PLI scheme and other regulatory measures, including quality control orders, standards and labels had given a big boost to Make In India and Atmanirbhar Bharat in ACs and LEDs.
In the first round of applications, 52 companies had filed their applications and 46 applicants with committed investment of Rs5,264 crore were selected.
Altogether, 61 applicants approved in both the rounds are expected to bring investments in component manufacturing eco-system of ACs and LED lights industry to the tune of Rs6,632 crore and generate around 46,368 direct employment opportunities. The scheme is expected to lead to total production of components of ACs and LED lights of about Rs1,22,671 crore over five years.
For air conditioners, the companies will be manufacturing copper tubing, compressors, control assemblies for IDU or ODU, heat exchangers and BLDC motors among other components. Similarly, for LED lights, LED chip packaging, LED drivers, LED engines, LED light management systems and metallised films for capacitors etc will be manufactured in India.
The PLI scheme for white goods is designed to create complete component ecosystem for air conditioners and LED lights industry in India and make India an integral part of the global supply chains. The scheme extends an incentive of 6 per cent to 4 per cent on reducing basis on incremental sales for a period of five years subsequent to the base year and one year of gestation period.
The union cabinet had given approval to the Production-Linked Incentive (PLI) Scheme for white goods (air conditioners and LED lights) on 7 April 2021, to be implemented from FY 2021-22 to FY 2028-29 with an outlay of Rs6,238 crore.