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5 Firms to Invest Rs 863 Cr, Boost AC Parts Production Under PLI Scheme

The government has provisionally selected five companies in the fourth round of the PLI Scheme for White Goods, focused on manufacturing air conditioner components. These firms are expected to achieve a total production of Rs 8,337 crore and create nearly 1,800 direct jobs by FY 2027-28. Overall, 85 selected companies under the scheme are projected to invest Rs 11,198 crore, leading to cumulative production of about Rs 1.9 lakh crore. The scheme aims to significantly boost domestic value addition in AC and LED light components from 20-25% to 75-80%.

Key Points: PLI White Goods: 5 Firms to Generate Rs 8,337 Cr Production

  • 5 firms selected in 4th round
  • Rs 863 crore committed investment
  • Domestic value addition to rise to 75-80%
  • Scheme outlay is Rs 6,238 crore
2 min read

PLI White Goods scheme: 5 selected firms to achieve Rs 8,337 crore in production, says govt

Govt selects 5 firms in PLI White Goods scheme's 4th round, expecting Rs 8,337 crore production and 1,799 jobs by FY28. 85 total firms to invest Rs 11,198 crore.

"expected to achieve a total production of Rs 8,337.24 crore and generate 1,799 additional direct jobs - Ministry of Commerce and Industry"

New Delhi, Jan 23

The government on Friday said that five companies, selected in the fourth round under the PLI Scheme for White Goods, are expected to achieve a total production of Rs 8,337.24 crore and generate 1,799 additional direct jobs by FY 2027-28.

The evaluation of 13 applications received in the fourth round under the PLI Scheme for White Goods has resulted in the provisional selection of five applicants, with a committed investment of Rs 863 crore, all engaged in the manufacturing of air conditioner (AC) components, said Ministry of Commerce and Industry in a statement.

According to the statement, overall, a total of 85 companies selected under the PLI Scheme for White Goods (Air Conditioners and LED Lights) are expected to make investments of Rs 11,198 crore, leading to cumulative production of Rs 1,90,050 crore over the scheme period.

Eight applicants have been referred to the Committee of Experts (CoE) for detailed examination and recommendations.

The scheme offers incentives ranging from 6 per cent to 4 per cent on a reducing basis on incremental sales for a period of five years, following the base year and a one-year gestation period.

Domestic Value Addition is expected to increase from the current 20-25 per cent to 75-80 per cent.

The Cabinet approved the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) on April 7, 2021, with a total outlay of Rs 6,238 crore, to be implemented from FY 2021-22 to FY 2028-29.

Under the scheme, manufacturers of air conditioners will produce components such as compressors, copper tubes (plain and/or grooved), control assemblies for IDUs and ODUs, heat exchangers, and BLDC motors, among others.

Similarly, for LED Lights, components including LED chip packaging, LED drivers, LED engines, LED light management systems, and metallized films for capacitors, among others, will be manufactured in India, according to the official statement.

The scheme aims to create a robust domestic component ecosystem for the air conditioners and LED Lights industry and position India as an integral part of the global supply chains.

- IANS

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Reader Comments

S
Sarah B
While the intent is good, the execution is key. The article mentions 8 applicants are still under examination. The government needs to ensure transparency in the selection process and timely disbursal of incentives. We've seen delays in other PLI schemes before.
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Priya S
Manufacturing compressors and BLDC motors in India is a game-changer! These are high-value items we currently import. If successful, this can make Indian ACs globally competitive. Fingers crossed for quality matching international standards. 🤞
R
Rohit P
Good news for engineering graduates! 1800 direct jobs mentioned, but the indirect employment in ancillary units will be much higher. This is exactly the kind of manufacturing push we need to employ our youth.
M
Michael C
Interesting to see the focus on LED components as well. With India pushing for energy efficiency, local production of LED drivers and chips can significantly bring down costs for the UJALA scheme and help in faster adoption.
K
Kavya N
The promised production is nearly Rs 1.9 lakh crore! That's massive. But will the market absorb all this? Hope the companies have solid export plans too, otherwise we might face a glut. The global supply chain integration goal is crucial.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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