Over the next five years, DPIIT expects the PLI scheme to lead to total production of about Rs2.7 trillion worth of components for ACs and LEDs, and generate about 2 lakh direct and indirect employment opportunities
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NEW DELHI: A total of 52 companies have filed applications committing investment worth Rs5,866 crore, under the production linked incentive (PLI) scheme to incentivise domestic manufacturing of components of white goods such as air conditioners and LED lights.
The last date for submitting applications was 15 September.
“Several companies like Daikin, Panasonic, Hitachi, Mettube, Nidec, Voltas, Bluestar, Havells, Amber, EPack, TVS-Lucas, Dixon, R K Lighting, Uniglobus, Radhika Opto, Syska among others have applied for manufacturing critical components of air conditioners and LED lights. 31 companies have committed investments of about Rs4,995 cr for AC components and 21 companies have committed investments of Rs871 cr for LED components," the Department for Promotion of Industry and Internal Trade (DPIIT) said in a statement.
The Union Cabinet had approved the PLI scheme for white goods components, to be implemented over FY22 to FY29 with an outlay of Rs6,238 crore, on 7 April. The scheme was notified by DPIIT on 16 April and scheme guidelines were published on 4 June. Online applications were received from 15 June till 15 September. The selection of applicants will be done by 15 November, which is 60 days from the date of closure of application window.
The PLI scheme for white goods is designed to create complete component ecosystem for air conditioners and LED lights industry in India, making the country an integral part of the global supply chains. The scheme will extend an incentive of 4-6% on incremental sales for a period of five years subsequent to the base year and one year of gestation period.
“Selection of companies for the scheme shall be done so as to incentivise manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods is not being incentivized. It will lead to increase in value addition in country from 20% to 80-85% and developing a robust component eco-system for AC industry and LED lights industry," DPIIT said.
Over the next five years, DPIIT expects the scheme to lead to total production of about Rs2.7 trillion worth of components for ACs and LEDs, and generate approximately 2 lakh direct and indirect employment opportunities.