LG, Adani Copper, Wipro among 19 applicants for white goods PLI scheme

As many as 19 companies have filed applications for the Production-Linked Incentive (PLI) scheme for white goods (ACs and LED lights) in the second round of applications with committed investments of ₹1,548 crore, according to the Ministry of Commerce and Industry. These include eight companies for AC components and 11 companies for LED lights.

Over the next five years, these 19 companies are expected to achieve production of about ₹26,880 crore of components of ACs and LED lights and create 5,522 direct jobs, the ministry says.

LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly Films, Crompton Greaves, Wipro, Zeco Aircon, Starion India and Swaminathan Enterprises are among the companies that have applied for manufacturing components of air conditioners and LED lights.

Applications have been filed for production of components which are not manufactured in India presently with sufficient capacity.

For air conditioners, companies will be manufacturing copper tubing, compressors, control assemblies, heat exchangers and BLDC motors among other components. Similarly, for LED lights, LED chip packaging, LED drivers, LED engines, LED light management systems and metallised films for capacitors, etc. will be manufactured in India.

The scheme is expected to bring investment in the component manufacturing ecosystem of ACs and LED lights industry to the tune of ₹7,074 crore and generate around 2 lakh direct and indirect jobs, the ministry says.

The scheme, according to the government, is expected to lead to total production of components of ACs and LEDs in India of about ₹1,07,134 crore.

In November 2020, the Union Cabinet chaired by prime minister Narendra Modi had given its approval to introduce the Production-Linked Incentive scheme for the 10 key sectors with a total outlay of ₹1,45,980 crore for enhancing India’s manufacturing capabilities and enhancing exports. These 10 sectors are in addition to the three sectors for which PLI schemes have been approved by the Cabinet in April 2020 for mobile manufacturing and specified electronic components, critical key drug intermediaries and APIs, and manufacturing of medical devices. White goods (air conditioner and LED lights) is one of the 10 key sectors with an outlay of ₹ 6,238 crore.

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

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, the commerce ministry says. Domestic value addition is expected to grow from the current 15-20% to 75-80%, it adds.

The online application window for the second round was open from March 10 to April 25, 2022.