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Fifty-two companies file applications for PLI Scheme for White Goods

Friday, 17 Sep 2021
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In all, 52 companies have filed their applications with committed investment of Rs 5,866 crore under the PLI Scheme to incentivise the domestic manufacturing of components of White Goods (air-conditioners and LED lights), applications for which closed on 15 September 2021. 
The PLI Scheme was notified on 16 April 2021. Several companies such as Daikin, Panasonic, 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.
The applications have been filed for production of components which are not manufactured in India presently with sufficient capacity. For air-conditioners, several companies will be manufacturing compressors, copper tubing, aluminium stock for foils, control assemblies for IDU or ODU, Display units, 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, among others will be manufactured in India. 
The Union Cabinet chaired by Prime Minister Narendra Modi has given approval to the Production Linked Incentive (PLI) Scheme for White Goods (air-conditioners and LED lights) to be implemented over FY22 to FY29 with an outlay of Rs 6,238 crore on 7 April 2021. The Scheme Guidelines were published on 4 June 2021. 
Online applications have been received from 15 June 2021 till 15 September 2021. The selection of applicants will be done within 60 days from the date of closure of application window i.e. by 15 November 2021.
The PLI Scheme on White Goods is designed to create 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 will extend an incentive of four percent to six percent on incremental sales for a period of five years subsequent to the base year and one year of gestation period. Only manufacturing of components of ACs and LED Lights will be incentivised under the Scheme. 
The Scheme will incentivise manufacturing of components of ACs and LED Lights. Ninety percent bill of material (BoM) of ACs and 87 percent of BoM of LED Lights are covered under PLI Scheme. 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 AC Industry and LED Lights Industry.
The selection of companies for the Scheme will be done so as to incentivise manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods is not being incentivised. 
Over the next five years, the Scheme is expected to lead to total production of around Rs 2,71,000 crore of components of ACs and LEDs. The Scheme will bring additional investment in component manufacturing eco-system of ACs and LED Lights industry to the tune of Rs 5,886 crore.  
As many as 31 companies have committed investments of around Rs 4,995 crore for AC components and 21 companies have committed investments of Rs 871 crore for LED components.
The scheme will generate approximately two lakh direct and indirect employment opportunities in next five years. The domestic value addition is expected to grow from the current 15-20 percent to 75-80 percent.
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