New AC, LED Makers Shortlisted For PLI Scheme Commit Rs 2,300 Crore Investment
Six existing PLI beneficiaries have been upgraded to higher investment categories under the scheme's third round, committing an additional Rs 1,217 crore.
The third round of Production-Linked Incentive Scheme will see a total of 24 beneficiaries committing an investment of Rs 3,516 crore to significantly boost the production of air conditioners and LED light components across India. This initiative is expected to enhance manufacturing capabilities and drive economic growth in the sector.
A total of 38 applications were received, with the government provisionally selecting 18 new companies, including 10 manufacturers of AC components and eight manufacturers of LED lights, who have committed investments of Rs 2,299 crore.
For ACs, the focus will be on producing key components such as compressors, copper tubes, control assemblies, heat exchangers, and BLDC motors. For LED lights, production will include LED chip packaging, drivers, engines, light management systems, and metallised films for capacitors.
Jupiter Aluminium Industries Pvt., Ram Ratna Wires Ltd., SMEL Steel Structural Pvt., Voltas Components Pvt. and Next Generation Manufacturers Pvt. were among the manufacturers of AC components. The other manufacturers include Neemrana Steel Service Center India Pvt., Clad Metal India Pvt., Malhotra Electronics Pvt., MIRC Electronics Ltd. and Smile Electronics Ltd.
Lumax Industries Ltd., Ikio Solutions Pvt., Neolite ZKW Lightings Pvt. and Dhruv Industries Ltd. are among the eight manufacturers of LED selected by the government. Uno Minda Ltd., HQ Lamps Manufacturing Co. Pvt., Interlux Electronics Pvt., and Hella India Automotive Pvt. were also selected in the third round.
Additionally, six existing PLI beneficiaries have been upgraded to higher investment categories, committing an additional Rs 1,217 crore. These include Hindalco Industries Ltd., LG Electronics India Pvt., Mettube Copper India Pvt., Blue Star Climatech Ltd., Voltas Ltd. and Halonix Technologies Pvt.
Meanwhile, 13 applicants, including two existing ones, are being referred to the Committee of Experts for further review and recommendations. One applicant has withdrawn from the scheme.
Overall, 84 companies under the PLI Scheme for White Goods are expected to bring in investments totaling Rs 10,478 crore, leading to a projected production worth around Rs 1.73 lakh crore.
The Union Cabinet approved the PLI Scheme for White Goods in April 2021, with an outlay of Rs 6,238 crore for the period from financial year 2021-22 to financial year 2028-29. The scheme aims to develop a strong component ecosystem for the AC and LED light industries in India and integrate India into global supply chains.
It offers an incentive of 6% to 4% on incremental sales over five years, with domestic value addition expected to rise from 15-20% to 75-80%., set to significantly boost the production of Air Conditioner and LED Light components across India.
