The commerce and industry ministry on April 26 announced that 19 global and domestic businesses have applied for the production-linked incentive (PLI) scheme for white products – air conditioners (ACs) and LED lights – and have promised Rs 1,548 crore in investment.
In March, the government reopened the application process for the scheme. As reported, a senior government official said the second round of PLI applications was requested because all authorised funds had not been used.
LG, Adani Copper Tubes, Jindal Poly Films, Mitsubishi Electric and Crompton Greaves are among the companies that have applied to manufacture essential AC and LED light components. Of the applicants, eight companies make AC components and 11 LED lights.
The PLI plan for white goods picked 42 companies in November, including Blue Star, Daikin, Havells and Orient Electric. In comparison to the overall budget of Rs 6,238 crore, they had committed investments worth Rs 5,858 crore.
LG has suggested an investment of Rs 300 crore in compressors, according to the official. Adani Copper Tubes and Zeco Aircon have proposed investments in compressors and heat exchangers of Rs 408 crore and Rs 100 crore, respectively. Meanwhile, Wipro has proposed a Rs 12-crore investment.
These 19 enterprises are anticipated to produce around Rs 26,880 crore worth of AC and LED light components over the next five years, generating direct employment for 5,522 people, according to an official statement.
It was also stated that applications have been made for production of components that are currently unavailable in adequate quantities in India.
Companies will produce copper tubing, compressors and heat exchangers, among others, for air conditioners. Similarly, chip packing, drivers, light management systems, engines and metallised sheets for capacitors will be produced for LED lights.
Overall, the initiative is estimated to attract Rs 7,074 crore in investment to the component manufacturing ecosystem of the AC and LED lighting industries, as well as 200,000 direct and indirect job possibilities. It is estimated to result in total manufacturing of components for ACs and LEDs worth Rs 1.07 trillion in India.
The PLI scheme for white goods is intended to build a complete component ecosystem in India for ACs and LED lights, allowing the nation to become a vital element of global supply chains.
For a period of five years following the base year and one year of gestation, the programme provides a 6% to 4% incentive on incremental sales on a declining basis. Domestic value addition is predicted to increase from the current 15-20% to 75-80%, according to the government.
Read all the Latest Business News here
Comments
0 comment