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regular-article-logo Sunday, 05 May 2024

White goods companies bite PLI bait

The 15 firms selected include six for manufacturing AC components and nine for LED light components

Our Special Correspondent New Delhi Published 29.06.22, 02:20 AM
In March, the commerce and industry ministry reopened the application window for the Rs 6,238-crore PLI scheme in white goods — air-conditioners (ACs) and LED lights — with the aim to accommodate more players.

In March, the commerce and industry ministry reopened the application window for the Rs 6,238-crore PLI scheme in white goods — air-conditioners (ACs) and LED lights — with the aim to accommodate more players. Shutterstock

The Centre on Tuesday picked 15 companies — including Adani Copper Tubes, LG Electronics and Wipro Enterprises — on a provisional basis for the production-linked incentive (PLI) scheme for the white goods sector — with committed investments totalling Rs 1,368 crore.

In March, the commerce and industry ministry reopened the application window for the Rs 6,238-crore PLI scheme in white goods — air-conditioners (ACs) and LED lights — with the aim to accommodate more players. In the second round, 19 companies applied for the incentives.

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Last year, as many as 46 firms, including Daikin, Panasonic, Syska and Havells, with committed investment of Rs 5,264 crore were selected in the first round of the scheme.

“After evaluation of the 19 applications received in the second round...15 applicants with committed investment of Rs 1,368 crore have been provisionally selected as beneficiaries,” the commerce and industry ministry said.

The 15 firms selected include six for manufacturing AC components with committed investments of Rs 908 crore and nine for LED light components with committed investments of Rs 460 crore.

“These 15 firms will have total production worth Rs25,583 crore over five years and generate additional direct employment of 4,000 persons,” it said. The ministry said the scheme is expected to lead to total production of AC and led lights components of about Rs 1.22 lakh crore.

Anil Agrawal, additional secretary in the department of promotion of industry and internal trade (DPIIT), told reporters that as a result of PLI, the domestic value addition in these segments is expected to grow from the current 15-20per cent to 75-80 per cent.

The ministry said in ACs, companies will manufacture copper tubing, compressors, control assemblies, and heat exchangers, among others.

Tech Push

• Adani Copper Tubes, LG and Wipro among the winners

• Total investments by the 15 to be Rs 1,368 cr

• Additional jobs to 4.000

• Support for AC components and LED parts

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