As many as 52 global and domestic companies have filed applications and committed investment worth Rs 5,866 crore towards PLI scheme for white goods — air conditioners (ACs) and LED lights. As many as 31 companies have committed investments of about Rs 4,995 crore for AC components and 21 companies have committed investments of Rs 871 crore for LED components.
Several companies like Daikin, Panasonic, Hindalco, Hitachi, Mettube, Nidec, Voltas, Bluestar, Havells, Amber, EPack, TVS-Lucas, Dixon, R K Lighting, Uniglobus, Radhika Opto, Syska among others have applied for manufacturing critical components of Air conditioners and LED Lights.
PM Modi led Union Cabinet has given approval to the Production-Linked Incentive (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 6238 crore on 7th April 2021.
For air conditioners, companies will be manufacturing compressors, copper tubing, aluminum stock for foils, control assemblies for IDU or ODU (indoor/outdoor unit), display units, brushless DC (BLDC) motors, among other components.
Similarly, for LED lights, LED chip packaging, LED drivers, LED engines, LED light management systems, PCBs, including metal clad PCBs, and wire wound inductors will be manufactured in India.
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“The PLI Scheme for white goods is designed to create a complete component ecosystem for air conditioners and LED lights industry in India and make India an integral part of the global supply chains. The scheme shall extend an incentive of 4 percent to 6 percent on incremental sales for a period of five years subsequent to the base year and one year of gestation period,” an official statement said.
Only manufacturing of components of ACs and LED Lights will be incentivized under the scheme, assembly of finished goods will not, Anil Agrawal, additional secretary at the Department for Promotion of companies told reporters.
“Ninety percent Bill of Material (BoM) of ACs and 87 percent of BoM of LED lights are covered under PLI Scheme for white goods . It will lead to increase in value addition in country from 20 percent to 80-85 percent and developing a robust component eco-system for the AC industry and LED lights Industry,” the statement said.
Over the next five years, the scheme is expected to result in total production of about Rs 2.71 trillion of components of ACs and LEDs. Panasonic has made an investment proposal of ₹300 crore to manufacture compressors and heat exchangers.
The scheme will generate approx. 200,000 direct and indirect employment opportunities over the next five years. Domestic value addition is expected to grow from the current 15-20 percent to 75-80 percent.
Also, Read This: Indian AC Manufacturing Industry To Reach INR 1 Lakh Crores In Nine Years With The Help Of PLI Scheme