Several companies such as LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly films, Crompton Greaves, Wipro, Zeco Aircon, Starion India and Swaminathan Enterprises are among companies which have applied for manufacturing components of Air conditioners and LED Lights under the Production Linked Incentive (PLI) Scheme.
According to the Ministry of Commerce & Industry, nineteen companies have filed applications for PLI for White Goods (ACs and LED Lights) in the second round of applications with committed investments of Rs 1,548 crore. This includes 8 companies for AC components and 11 companies for LED Lights. Over the next 5 years, these 19 companies are expected to achieve production of about Rs 26,880 crore of components of ACs and LED Lights and generate direct employment of 5,522 persons.
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 for IDU or ODU, Heat Exchangers and BLDC motors among other components. Similarly, for LED Lights, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems and Metallized films for capacitors etc. will be manufactured in India.
Altogether, the scheme will bring investment in component manufacturing eco-system of ACs and LED Lights industry to the tune of Rs 7,074 crore and generate approx. 2 lakh direct and indirect employment opportunities. The Scheme is expected to lead to total production of components of ACs and LEDs in India of about Rs 1,07,134 crore.
Approval have been granted by the Government to introduce the Production-Linked Incentive (PLI) Scheme for the 10 key sectors with total outlay of Rs 1,45,980 Crore for enhancing India’s manufacturing capabilities and enhancing exports. These 10 sectors are in addition to the 3 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) sectors is one of the 10 key sectors with an outlay of ₹ 6,238 Crore.
The PLI Scheme on White Goods is designed to create complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
