White goods PLI round 2: 19 global, domestic companies file applications | Business Standard News

Clipped from: https://www.business-standard.com/article/companies/white-goods-pli-round-2-19-global-domestic-companies-file-applications-122042700017_1.html

A senior government official said the second round of applications was invited as the entire allocated funds were not utilised.

PLI, Product-linked scheme, electronics, manufactuing, consumer durables, air conditioners, white goods, led lights

As many 19 global and domestic companies have filed applications and committed investment worth Rs 1,548 crore towards the production-linked incentive (PLI) scheme for white goods – air conditioners (ACs) and LED lights – the commerce and industry ministry said on Tuesday.

Companies such as LG, Adani Copper Tubes, Jindal Poly Films, Mitsubishi Electric, Crompton Greaves, among others, have applied for manufacturing critical components of air conditioners and LED lights. This includes eight companies for AC components and 11 companies for LED Lights.

The government had reopened the applications for the scheme in March. In November, 42 companies, including Blue Star, Daikin, Havells, and Orient Electric, were selected under the PLI scheme for white goods. They had committed investments worth Rs 5,858 crore, as compared to the total budget of Rs 6,238 crore.

A senior government official said the second round of applications was invited as the entire allocated funds were not utilised.

The official said that LG has proposed to make investments worth Rs 300 crore for compressors. Adani Copper Tubes and Zeco Aircon have proposed to make investments worth Rs 408 crore and Rs 100 crore, respectively, for compressors and heat exchangers.

Wipro has proposed to make investments worth Rs 12 crore.White goods PLI round 2: 19 global, domestic companies file applications

Over the next five years, these 19 companies are expected to achieve production of about Rs 26,880 crore of components of ACs and LED lights and generate direct employment for 5,522 persons, an official statement said on Tuesday.

Applications have been filed for production of components that are not manufactured in India presently in sufficient quantities. For ACs, companies will manufacture copper tubing, compressors, and heat exchangers, among others. Similarly, for LED lights, chip packaging, drivers, engines, light management systems, and metallised films for capacitors will be manufactured here, the statement said.

Altogether, the scheme is expected to bring Rs 7,074 crore of investments in the component manufacturing ecosystem of ACs and LED lights industry and generate around 200,000 direct and indirect employment opportunities. It is expected to lead to total production of components of ACs and LEDs in India of about Rs 1.07 trillion.

The PLI Scheme on white goods is designed to create a complete component ecosystem for ACs and LED lights in India and make the country 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 government estimates that domestic value addition is expected to grow from the current 15-20 per cent to 75-80 per cent.

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