19 companies apply for PLI Scheme for white goods in second round

A total of 19 companies have applied under government's Production Linked Incentive scheme (PLI) for white goods in the second round of applications with investments worth Rs 1,548 crore, the Ministry of Commerce & Industry said on Tuesday.

The companies that have filed their applications under the category include eight companies for AC components and 11 for LED Lights. The companies are expected to achieve production of about Rs 26,880 crore of AC components as well as LED Lights and generate direct employment of 5,522 persons, the ministry stated.

The companies that have filed applications for manufacturing air conditioners and LED Lights include LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly films, Crompton Greaves, Wipro, Zeco Aircon, Starion India and Swaminathan Enterprises.

Altogether, the scheme will bring investment in the component manufacturing eco-system of ACs and LED Lights industry to around Rs 7,074 crore and generate approximately 2,00,000 direct and indirect employment opportunities. It is expected to lead to the total production of components of ACs and LEDs in India of about Rs 1,07,134 crore, the government statement said.

The PLI scheme on white Goods is designed to create a complete component ecosystem for the air conditioners and LED Lights industry in India. The scheme extends an incentive of 6 per cent to 4 per cent on a reducing basis of incremental sales for a period of five years subsequent to the base year and one year of gestation period. Domestic Value Addition is expected to grow from the current 15-20 per cent to 75-80 per cent.

Production Linked Incentive Scheme (PLI) for white goods was notified on April 16, 2021, with an outlay of Rs 6,238 crore. The online applications were received from June 15, 2021, till September 15, 2021. Previously, a total 52 companies had filed their application. After evaluation of all the applications, 42 applicants with a committed investments of Rs 4,614 crore were selected as beneficiaries under the PLI scheme.