Yahoo Finance 52 companies file applications for PLI scheme for ACs, LED Lights
New Delhi [India], September 17 (ANI): A total of 52 companies have filed applications committing investment worth Rs5,866 crore, under the production linked incentive (PLI) scheme to incentivise domestic manufacturing of components of white goods such as air conditioners and LED lights.
The PLI scheme was notified on April 16 and the application for the same closed on September 15.
"Several companies like Daikin, Panasonic, Hitachi, Mettube, Nidec, Voltas, Bluestar, Havells, Amber, EPack, TVS-Lucas, Dixon, RK Lighting, Uniglobus, RadhikaOpto, Syska among others have applied for manufacturing critical components of Air conditioners and LED Lights," the Ministry of Commerce and Industry said in a statement issued by them on Thursday.
"Over the next 5 years, the Scheme is expected to lead to a total production of about Rs 2,71,000 crore of components of ACs and LEDs. The scheme will bring additional investment in the component manufacturing eco-system of ACs and LED Lights industry to the tune of Rs 5,886 crore. 31 companies have committed investments of about Rs 4,995 crore for AC components and 21 companies have committed investments of Rs 871 crore for LED components."
"For Air Conditioners, several companies will be manufacturing compressors, copper tubing, aluminium stock for foils, control assemblies for IDU or ODU, Display units, BLDC motors among other components. Similarly, for LED Lights LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems, PCBs including metal-clad PCBs and Wire-wound inductors will be manufactured in India," the statement read.
The Union Cabinet chaired by Prime Minister Narendra Modi had given approval to the PLI Scheme for white goods (Air Conditioners and LED lights) to be implemented over Financial Year (FY) 2021-22 to FY 2028-29 with an outlay of Rs. 6,238 crore on April 7.
The PLI Scheme on white goods is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. The Scheme shall extend an incentive of 4 per cent to 6 per cent on incremental sales for a period of five years subsequent to the base year and one year of gestation period. Only manufacturing of components of ACs and LED Lights will be incentivized under the Scheme.
The Scheme will incentivize the manufacturing of components of ACs and LED Lights. 90 per cent Bill of Material (BoM) of ACs and 87 per cent of BoM of LED Lights are covered under PLI Scheme. It will lead to an increase in value addition in the country from 20 per cent to 80-85 per cent and developing a robust component eco-system for AC Industry and LED Lights Industry.
Selection of companies for the scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods is not being incentivized.
The scheme will generate nearly 2 lakh direct and indirect employment opportunities in the next 5 years. Domestic Value Addition is expected to grow from the current 15-20 per cent to 75-80 per cent. (ANI)
