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  Business   In Other News  17 Sep 2021  52 firms apply for white goods PLI

52 firms apply for white goods PLI

THE ASIAN AGE. | SANGEETHA G
Published : Sep 17, 2021, 2:02 am IST
Updated : Sep 17, 2021, 2:02 am IST

The selection of applicants will be done within 60 days

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New Delhi: The production-linked incentive (PLI) scheme for for white goods has received applications from 52 companies—including Daikin, Panasonic and Hitachi—cumulatively committing investments of Rs 5,866 crore.

The other companies which have filed applications include Mettube, Nidec, Voltas, Bluestar, Havells, Amber, EPack, TVS-Lucas, Dixon, RK Lighting, Uniglobus, Radhika Opto and Syska for manufacturing critical components of air conditioners and LED lights.

 

As many as 31 companies have committed investments of about Rs 4,995 crore for AC components and 21 companies have committed investments of Rs 871 crore for LED components.

For airconditioners, companies will be manufacturing compressors, copper tubing, aluminium stock for foils, control assemblies for IDU or ODU (indoor/outdoor unit), display units, brushless DC (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 will be manufactured in India.

The PLI scheme notified on April 16 closed on September 15. The selection of applicants will be done within 60 days. The scheme, with an outlay of Rs 6,238 crore, will be implemented between FY22 and FY29 and an incentive of 4 to 6 per cent will be given on incremental sales for five years subsequent to the base year and one year of gestation period.

 

In the selection of companies, the focus  will be on incentivising manufacturing of components/ sub-assemblies which are not manufactured in India in sufficient capacity. Mere assembly of finished goods is not being incentivised. The government expects value addition in the country to increase from 20 per cent to 80-85 per cent.

The government expects the scheme to lead to total production of about Rs 2,71,000 crore of components of ACs and LEDs and provide two lakh direct and indirect employment opportunities in next five years.

Tags: production linked schemes (pli)
Location: India, Delhi, New Delhi