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LG Electronics, Mitsubishi Electric and 17 other companies have applied for benefits under the Production Linked Incentive (PLI) scheme for white goods in the second round of applications with committed investments of ₹1,548 crore, the commerce and industry ministry said on Tuesday.
As per an official estimate, the 19 companies are expected to achieve production of about ₹26,880 crore of components of ACs and LED Lights and generate direct employment of 5,522 persons over a period of 5 years.
Adani Copper Tubes, Jindal Poly films, Crompton Greaves, Wipro, Zeco Aircon, Starion India and Swaminathan Enterprises are other companies which have applied for manufacturing components of Air conditioners and LED Lights.
Applications have been filed for the production of components which are not manufactured in India presently with sufficient capacity. For Air Conditioners, companies will be manufacturing copper tubing, and compressors among other components.
For LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED light management systems and metallized films for capacitors etc. will be manufactured in India, an official statement read.
“Altogether, the scheme will bring investment in component manufacturing eco-system of ACs and LED Lights industry to the tune of ₹7,074 crore and generate approx. 2 lakh direct and indirect employment opportunities. The Scheme is expected to lead to total production of components of ACs and LEDs in India of about ₹1,07,134 crore," the ministry said.
The PLI Scheme on white goods is aimed at creating a complete component ecosystem for Air Conditioners and LED Lights Industry in India. The Scheme extends an incentive of 6% to 4% on reducing basis on 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% to 75-80%.
Initially, online applications were received from 15th June 2021 till 15th September 2021. Total of 52 companies had filed their application. After evaluation of all the applications, 42 applicants with a committed investment of ₹4,614 crore were selected as beneficiaries under the PLI scheme.
Additional applications were invited under Clause 9.2 of the Scheme Guidelines for investments. The online application window for the second round of applications was open for the period from the 10th March to 25th April 2022, the ministry added.