LG Electronics, Mitsubishi Electric and 17 other companies have applied for benefits under the Production Linked Incentive (PLI) scheme for white goods in the second round of applications with committed investments of Rs 1,548 crore, the commerce and industry ministry said on April 26, 2022.
The government in March reopened the application window for its Rs 6,238 crore PLI scheme for air-conditioners (ACs) and LED lights intending to accommodate more players as several firms have expressed interest in the initiative.
The ministry said that out of 19 applicants, eight are for AC components and 11 for LED lights. Over the next five years, these 19 companies are expected to achieve a production of around Rs 26,880 crore of AC and LED light components and generate direct employment to 5,522 persons.
Several companies such as LG Electronics, Mitsubishi Electric, Jindal Poly Films, Crompton Greaves, Adani Copper Tubes, Wipro, Zeco Aircon, Starion India and Swaminathan Enterprises are among the companies that applied for manufacturing of components for air conditioners and LED lights.
Applications have been filed for the production of components that are currently not manufactured in India with sufficient capacity. “19 companies have filed applications for the PLI scheme for white goods in the second round of applications with a committed investment of Rs 1,548 crore,” it said.
“Altogether, the scheme will bring investment in component manufacturing eco-system of ACs and LED Lights industry to the tune of Rs 7,074 crore and generate approx. 2 lakh direct and indirect employment opportunities. The Scheme is expected to lead to total production of components of ACs and LEDs in India of about Rs 1,07,134 crore,” the ministry said.
The objective of the PLI scheme on white goods is to create a complete component ecosystem for the Air Conditioner and LED light industry in India. The scheme offers an incentive of 6 per cent to 4 per cent on reducing basis on incremental sales for a period of five years after the base year and gestation period of one year. Domestic value addition is expected to increase to 75-80 per cent from the current 15-20 per cent.
The online application window for the second round was open from March 10 to April 25 this year. The final applicants will be selected within 60 days from the date of closing of the application window.
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