24 firms pour ₹3,516 crore into India's white goods sector in PLI scheme boost

A total of 24 beneficiaries have committed investments worth ₹3,516 crore under the third round of the Production-Linked Incentive (PLI) scheme for white goods, according to the Ministry of Commerce and Industry. This round is expected to significantly boost the production of components for air conditioners (ACs) and LED lights across India.

In the third round of the online application window for the PLI scheme, 38 applications were received. After evaluation, the government provisionally selected 18 new companies, including 10 manufacturers of AC components and 8 manufacturers of LED lights, with a combined investment commitment of ₹2,299 crore. Additionally, six existing PLI beneficiaries were provisionally selected for higher investment categories, pledging an additional ₹1,217 crore.

With these developments, 84 companies under the PLI scheme for white goods have committed investments totalling ₹10,478 crore, expected to generate production worth ₹1,72,663 crore, according to the ministry. This initiative is projected to strengthen manufacturing capabilities and drive economic growth in the sector.

The Union Cabinet approved the PLI scheme for white goods (air conditioners and LED lights) in April 2021, with an outlay of ₹6,238 crore for implementation from FY 2021-22 to FY 2028-29. The scheme aims to establish a robust component ecosystem for the air conditioning and LED lighting industries and integrate India into global supply chains. It offers incentives ranging from 4% to 6% on incremental sales over five years following a one-year gestation period. Domestic value addition is expected to rise from the current 15-20% to 75-80%, the ministry stated.

The application window was reopened to accommodate the industry's interest in increased investments under the scheme.

Notable commitments in the LED lights segment include ₹60 crore from Lumax Industries and ₹19.82 crore from Uno Minda. For AC components, Hindalco Industries pledged ₹899 crore, while LG Electronics India Private Ltd committed ₹733 crore.