15 more firms selected under PLI scheme for white goods

Representational image.

Representational image. | Photo Credit: Reuters

The government on June 28, 2022 said 15 firms, including Adani Copper Tubes, LG Electronics and Wipro Enterprises, with committed investment of ₹1,368 crore have been provisionally selected as beneficiaries under the production linked incentive (PLI) scheme for the white goods sector.

In November last year, 42 firms, including Daikin, Panasonic, Syska and Havells, with committed investment of ₹4,614 crore were selected.

In March this year, the government had reopened the application window for its ₹6,238-crore PLI scheme for air-conditioners (ACs) and LED lights with an aim to accommodate more players as several firms had expressed interest in the initiative.

In this round, 19 companies had applied.

"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.

These include six for manufacturing AC components with committed investments of ₹908 crore and nine for LED light components with committed investments of ₹460 crore.

"These 15 companies will have total production worth Rs 25,583 crore over five years and generate additional direct employment of 4,000 persons," it said.

The PLI scheme on white goods is designed to create a complete component ecosystem for ACs and LED light industry in India and make India an integral part of the global supply chains.

The ministry said the scheme is expected to lead to total production of AC and LED lights components of about ₹1,22,671 crore over five years.

For ACs, it said, companies will be manufacturing copper tubing, compressors, control assemblies, heat exchangers, among others.

Similarly, for LED lights, chip packaging, drivers, light management systems and metallized films for capacitors will be manufactured in India.

On April 7, 2021, the Union Cabinet gave its approval to the scheme for these goods, to be implemented over 2021-22 to 2028-29 with an outlay of ₹6,238 crore.

The scheme extends an incentive of 6-4% on a 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%, it added.

Applicants provisionally selected for the scheme include Adani Copper Tubes (with committed investment of ₹408 crore), LG Electronics India (₹300 crore), Mitsubishi Electric India and Kaynes Technology India (₹50 crore each).

The list also includes Jindal Poly Films (₹360 crore), Sahasra Semiconductors Pvt Ltd (₹20 crore), Wipro Enterprises (₹12 crore), and Crompton Greaves Consumer Electricals (₹10.15 crore).

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Printable version | Jun 28, 2022 5:23:47 pm |