PLI Scheme for White Goods: 24 Companies selected, Rs 3,516 crore investment committed

The Indian government's Production-Linked Incentive (PLI) scheme is set to revolutionise the country's manufacturing landscape. With a focus on boosting domestic production of air conditioners and LED light components, this scheme has attracted significant investment from leading companies. In its third round, 24 companies have committed to investing Rs 3,516 crore. This initiative is expected to create jobs, increase exports, and make India a global manufacturing hub.

In the third round of the online application window of the PLI scheme, a total of 38 applications were received. After reviewing these applications, the government has provisionally selected 18 new companies. These companies include 10 manufacturers of components of Air Conditioners and 8 manufacturers of LED Lights, with a committed investment of Rs 2,299 crore, the statement said.

The companies that have been selected include Voltas Components, Jupiter Aluminium, SMEL Steel, Lumax, Intelux Electronics, and Neolite.
In addition, six existing PLI beneficiaries have been provisionally selected to upgrade to higher investment categories, committing an additional investment of Rs 1,217 crore. 

These include companies such as Hindalco, LG Electronics, Blue Star, and Voltas.
Altogether, 84 companies under the PLI Scheme for White Goods are set to bring investments of Rs 10,478 crore, resulting in production worth Rs 1,72,663 crore, the statement said.

It highlighted that the move is expected to bolster the manufacturing capabilities and economic growth in the sector. For air conditioners, companies will be manufacturing components like compressors, copper tubes (plain and/or grooved control assemblies for IDU or ODU, Heat Exchangers, and BLDC motors among others.

Similarly, LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems, and Metallized films for capacitors, etc. will be manufactured in India.

The Union Cabinet had approved the PLI Scheme for White Goods (Air Conditioners and LED lights) to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 crore on April 7, 2021. The scheme was notified by DPIIT on April 16, 2021.

The PLI Scheme on White Goods aims to create a strong component ecosystem for the air conditioners and LED lights Industry 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 a reducing basis of incremental sales for 5 years, after the base year and one year of the gestation period. 

Domestic Value Addition is expected to grow from the current 15-20 per cent to 75-80 per cent.

This investment will be used to manufacture critical components like compressors, copper tubes, and heat exchangers for ACs, LED chip packaging, LED drivers, and LED light management systems for LED lights. 

The scheme aims to strengthen India's manufacturing capabilities and increase domestic value addition from 15-20% to 75-80%.