The Narendra Modi government on Wednesday approved 42 companies under the white goods Production-Linked Incentive (PLI) scheme and expects an incremental production of Rs 81,254 crore and direct employment of about 44,000 people.
"After evaluation of all the applications, 42 applicants with committed investment of Rs 4,614 crore have been provisionally selected as beneficiaries under the PLI scheme. The selected applicants include 26 for air conditioner manufacturing with committed investments of Rs 3,898 crore and 16 for LED Lights manufacturing with committed investments of Rs 716 crore," the ministry of commerce and industry said.
Six applicants proposing FDI from countries sharing land borders with India have been advised to submit their applications for approval, it added. Further, four applicants have been referred to the Committee of Experts (CoE) for examination.
The scheme will be implemented over a seven-year period from 2021-22 to 2028-29 and has an outlay of Rs 6,238 crore, which was approved by the Cabinet.
The investments in air conditioners will lead to manufacturing components across the complete value chain including components that are not manufactured in India with sufficient quantity, the ministry said.
"At present, there is insignificant manufacturing of certain high-value components of ACs like Compressors, copper tubing and aluminium stock for foils. Many other components like control assemblies for indoor units (IDU) or outdoor units (ODU), display units, brushless direct current motors, valves etc. are not manufactured in enough quantity. All these components will now be manufactured in India in significant quantities," it said.
Also, LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems, PCBs including metal-clad PCBs and wire-wound inductors etc. will be manufactured in India in high quantities, it added.
The government had approved a PLI scheme for white goods -- air conditioners (ACs) and LED Lights -- with a budgetary outlay of Rs 6,238 crore. It will be implemented from 2021-22 to 2028-29. The scheme proposes financial incentives to boost domestic manufacturing and attract large investments in the white goods manufacturing value chain.
(Edited by : Jomy Jos Pullokaran)
First Published: IST