Centre receives investment proposal of Rs 6,000 crore for PLI in white goods
Companies including Daikin, Panasonic, Hitachi, Mettube, Nidec,
, Blue Star, Havells, Amber, EPack, TVS-Lucas, Dixon, R K Lighting, Uniglobus, Radhika Opto and Syska have applied for the scheme, the Department for Promotion of Industry and Internal Trade (DPIIT) said in a media release on Thursday.
The government expects production of components worth Rs 2.71 lakh crore by these firms over the next five years, it said. The AC component segment has received investment proposals of about Rs 4,995 crore from 31 companies, while 21 companies plan to invest Rs 871 crore for LED components.
ET first broke the story before DPIIT issued the release in its online edition on Thursday.
DPIIT estimates that the PLI scheme will help generate around 200,000 direct and indirect employment opportunities in the next five years.
The Union cabinet has approved an outlay of Rs 6,238 crore for this scheme over 2021-22 to 2028-29.
Manish Sharma, chair for electronics manufacturing committee at Ficci and president of
, said the PLI scheme will make India self-reliant in white goods manufacturing. He said a healthy mix of Indian and multinational companies have applied for the scheme.
“For AC, we expect the local value addition will move from 20-25% to 75% in the next five years,” Sharma said.
Panasonic has made an investment proposal of Rs 300 crore to manufacture compressors and heat exchangers.
DPIIT additional secretary Anil Agrawal said the PLI scheme will deepen the manufacturing of component ecosystems in the country which is currently missing for products like AC and LED lighting.
“This will deepen the value chain since it will cover almost 90% of the components and India will have huge capacities for component manufacturing,” he told ET. “This would not have been possible if we had given the PLI benefit for finished goods.”
Sunil Vachani, chairman of Dixon, the largest homegrown contract manufacturer, said the PLI scheme in white goods is immensely successful since getting investment into components is never easy with some components attracting zero import duties and due to lack of local scale yet. “The PLI will strengthen the industry in the long term,” he said.
Dixon’s total proposed investment under this scheme is Rs 150 crore.
For AC, the PLI scheme has received investment proposals for local manufacturing of compressors, copper tubing, aluminium stock for foils, control assemblies, display units, and BLDC motors. For LED lights, it includes LED chip packaging, LED drivers, LED engines, LED light management systems, PCBs including metal-clad PCBs, and wire wound inductors.
The government’s application window for the scheme closed on Wednesday. DPIIT said the selection of applicants will be done within 60 days. The scheme shall extend an incentive of 4% to 6% on incremental sales for a period of five years subsequent to the base year and one year of gestation period.