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PLI Scheme Boosts ₹3,516 Crore Investment for AC and LED Component Manufacturing in India

PLI Scheme Boosts ₹3,516 Crore Investment for AC and LED Component Manufacturing in India - Latest Electronics News - Updates - Before You Take
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India’s Production-Linked Incentive (PLI) Scheme for White Goods is gaining momentum, with its third round attracting significant participation from industry players. Designed to boost domestic manufacturing, the scheme has approved 24 companies in its latest phase, aiming to transform India’s AC and LED lighting sectors.

 

Key Points

24 Companies Approved: Includes 18 new entrants and 6 existing participants opting for higher investments.

 

₹3,516 Crore Investment: Committed by selected companies for manufacturing AC and LED light components.

 

Boost to Domestic Manufacturing: Focuses on creating a robust ecosystem for essential components like compressors and LED drivers.

 

84 Companies in Total: The scheme now includes 84 participants with investments exceeding ₹10,478 crore.

 

₹1,72,663 Crore Production Value: Projected output over the program’s duration.

 

Increased Value Addition: Domestic value addition is expected to rise from 15-20% to 75-80%.

 

Comprehensive Incentives: Offers 4%-6% on incremental sales for five years.

 

Investment Breakdown and Approvals

The 24 approved companies have collectively pledged ₹3,516 crore:

 

New Entrants: Eighteen fresh participants focus on AC and LED components, contributing ₹2,299 crore.

 

Existing Beneficiaries: Six ongoing participants have upgraded their investment commitments, adding ₹1,217 crore.

 

Additionally, a Committee of Experts is reviewing 13 more applications, and one applicant has withdrawn from the scheme.

 

Economic and Industrial Impact

Including these new companies, the PLI Scheme now supports 84 participants. Their combined investments are projected to generate production worth ₹1,72,663 crore.

 

The scheme’s primary focus includes:

 

Air Conditioner Components: Manufacturing compressors, copper tubes, heat exchangers, and BLDC motors.

 

LED Lighting Components: Development of LED chip packaging, drivers, engines, and light management systems.

 

This initiative reduces dependency on imports, strengthens local supply chains, and creates jobs, contributing to India’s vision of becoming a global manufacturing hub.

 

Objectives of the PLI Scheme

Launched in April 2021 with a budget of ₹6,238 crore, the PLI Scheme for White Goods aims to:

 

Enhance India’s manufacturing capabilities in the AC and LED lighting sectors.

 

Attract substantial investments in critical component production.

 

Integrate domestic manufacturers into global supply chains.

 

Encourage technological innovation and efficiency in production processes.

 

The scheme offers attractive incentives of 4% to 6% on incremental sales over five years, with a one-year setup period to support new participants.

 

A Step Towards Self-Reliance

The PLI Scheme for White Goods is a strategic move to position India as a leader in manufacturing. By fostering local production of high-value components, the initiative not only reduces reliance on imports but also elevates India’s competitiveness in the global market.

 

This forward-thinking approach aligns with the country’s broader goals of self-reliance and economic growth, marking a significant leap for the domestic manufacturing industry.

 

 

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