Nineteen companies file applications for PLI Scheme for White Goods (ACs and LED Lights)

In the second round of applications, 19 enterprises with committed investments of Rs 1,548 crore applied for the Production Linked Incentive (PLI) Scheme for White Goods (ACs and LED Lights). There are eight companies that deal with AC components and eleven companies that deal with LED lights. These 19 enterprises are estimated to produce around Rs 26,880 crore in components for ACs and LED lights over the next five years, employing 5,522 people directly.

Several firms have applied to manufacture components for air conditioners and LED lights, including LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly Films, Crompton Greaves, Wipro, Zeco Aircon, Starion India, and Swaminathan Enterprises.

Applications have been filed for the fabrication of components that are currently unavailable in India due to a lack of capacity. Companies will manufacture copper tubing, compressors, control assemblies for IDU or ODU, Heat Exchangers, and BLDC motors, among other components, for air conditioners. LED Chip packing, LED Drivers, LED Engines, LED Light Management Systems, and Metallized films for capacitors, among other things, will all be made in India.

Overall, the initiative will attract Rs 7,074 crore in investment in the component manufacturing eco-system of the AC and LED lighting industries, resulting in about 2 lakh direct and indirect job opportunities. The Scheme is estimated to result in a total output of components for ACs and LEDs worth Rs 1,07,134 crore in India.

The Prime Minister’s rallying cry for ‘Aatmanirbhar Bharat’ has put manufacturing front and centre, emphasising its importance in propelling India’s growth and creating jobs. As a result, on November 11, 2020, the Union Cabinet, chaired by the Hon’ble Prime Minister, approved the introduction of the Production-Linked Incentive (PLI) Scheme for ten key sectors, with a total outlay of Rs 1,45,980 crore, with the goal of improving India’s manufacturing capabilities and increasing exports. These ten industries join the three for which the Cabinet approved PLI schemes in April 2020: mobile manufacturing and specified electronic components, important key drug intermediaries and APIs, and medical device manufacture. One of the ten main sectors, White Goods (Air Conditioners and LED Lights), has a budget of Rs 6,238 crore.

On April 7, 2021, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) to be implemented throughout the fiscal years 2021-22 to 2028-29 with a budget of Rs 6238 crore. DPIIT notified the Scheme on April 16, 2021. On June 4, 2021, the Scheme Guidelines were released.

The White Goods PLI Scheme is intended to build a complete component ecosystem in India for the air conditioning and LED lighting industries, as well as to make India an integral part of global supply chains. For a period of five (5) years following the base year and one year of gestation, the Scheme provides an incentive of 6% to 4% on a declining basis on incremental sales. Domestic value addition is predicted to increase from 15-20 percent to 75-80 percent in the next years.

Initially, submissions were accepted online from June 15th to September 15th, 2021. A total of 52 businesses had submitted their applications. Following the review of all applications, 42 applicants with a pledged investment of Rs 4,614 crore were chosen as PLI beneficiaries.

Additional investment applications were requested under Clause 9.2 of the Scheme Guidelines. The on-line application window for the Second Round of applications was open from March 10th to April 25th, 2022.