Extended PLI scheme for AC, LED light components attract 38 investors
15 Oct 2024
The Production Linked Incentive (PLAI) scheme for white goods (air-conditioners and LED lights) received 38 responses in its third round of on-line application window.
Applications submitted by foreign and domestic manufacturers have committed investments worth a total Rs4,121 crore.
The window, which was open for 90 days beginning 15 July 2024, closed on 12 October.
The PLI scheme seems to have attracted the attention of small and medium industries as 43 per cent of the new applicants are from the MSME sector.
The PLI scheme, launched by the Department for Promotion of Industry and Internal Trade (DPIIT), has helped in making MSMEs part of the value chain of manufacturing of components of ACs and LED Lights.
Out of the 38 applicants, 8 are existing beneficiaries of the PLI scheme for White Goods (PLIWG), who proposed additional investment of about Rs1,285 crore. The remaining 30 are new applicants who have committed investment of about Rs2,836 crore for production of some critical components of ACs and LED Lights.
Investment proposals span 13 states, including Jammu & Kashmir and Odisha and cover 49 new locations. With this, investments under PLIWG will be spread across 54 districts in 18 states, covering 174 locations.
These include new manufacturing clusters at Noida-Greater Noida in UP, Neemrana and Bhiwari in Rajasthan, Aurangabad-Pune in Maharashtra, Sanad, Gujarat and Sri City in Andhra Pradesh.
With 6 AC manufacturers and 12 component manufacturers, Sri City in Andhra Pradesh has the nickname of Cooling City.
Five new foreign manufacturers are investing a total of Rs245 crore while 15 existing companies are investing Rs2,287 crore
With combined investment of Rs 11,083 crore, the ACs and LED Lights component manufacturing industry is expected to generate about 80,486 direct jobs and total production of AC and LED components valed at Rs1,81,975 crore.
