The production linked incentive (PLI) scheme for air conditioners and LED makers may be relaxed and investments made after April 1, 2021 will be eligible for benefits under the scheme, according to a media reports.
Speaking to CNBC-TV18, Atul Lall, MD of Dixon Technologies said it is a very prudent step by the government to allow capex made after April 1 to be considered under this scheme.
“The scheme has just been announced. The stakeholders have filed their applications only by September 15. So undoubtedly, it's a very positive step and it will help the industry in taking the maximum advantage of this particular scheme,” he said.
In the air conditioning space, Lall said that the company is getting into a JV with its Japanese partner Rexxam and has committed a capex of Rs 50 crore. “This is primarily for AC control boards. We hope that we are successful and selected as one of the PLI participants,” Lall said.
In the LED lighting, the company has committed a capex of Rs 100 crore in the component space. “We have filed an application and we are committing a capex of Rs 100 crore in the LED component space which will be primarily in the mechanical side and also in the LED lighting management systems and driver systems apart from some other small components,” he said.
Vikas Gupta, MD of PG Electroplast said the company meets all the pre-qualification criteria and has started a rollout of the first capex plan. “We have studied this scheme well and as per our understanding, we meet all the pre-qualification criterias. We have already started a rollout of our first capex plan and we have already submitted our application under AC PLI scheme. We have committed a capex of Rs 300 crore over a period of four to five years,” Gupta told CNBC-TV18.
“Out of that, capex of around Rs 120 crore will be happening in FY22 only. We are setting up a Greenfield facility in district of Ahmednagar, near Pune City, where we will be having an integrated manufacturing facility for air conditioners,” he added.
For the entire discussion, watch the video