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A total of 15 applicants, including Adani Copper Tubes, LG Electronics, Mitsubishi Electric India, Wipro Enterprises and Crompton Greaves, with committed investment of ₹1,368 crore, have been selected in the second round of the Production Linked Incentive (PLI) scheme in White Goods.
“After evaluation of the 19 applications received in the second round, 15 applicants have been chosen. These include six for manufacturing ACs components with committed investments of ₹908 crore and nine for LED Lights components with committed investments of ₹460 crore,” according to an official release issued by the Department for Promotion of Industry and Internal Trade (DPIIT) on Tuesday.
Four applicants not receiving approval includes Zeco Aircon (committed investment of ₹100 crore), EMM ESS Aircon (₹52 crore), Speedoffer India (₹18 crore); and SIMOCO Telecommunications (South Asia) Ltd (₹10.63 crore), are being referred to the Committee of Experts for its recommendations.
As per the estimates, the 15 selected companies will have a total production worth ₹23,960 crore over five years and generate direct employment to 4,300 persons.
First round
In the first round, a total of 46 applicants, including Daikin, Panasonic and Havells, with committed investment of ₹5,264 crore were selected.
Of the six applicants in the first round who had proposed FDI from countries sharing land border with India, two had subsequently received approvals, said Anil Agrawal, Additional Secretary, DPIIT, in a briefing.
These include Midea India Pvt Ltd (with committed investment of Rs 250 crore) to manufacture compressors and Chenfeng Tech (Rs 100 crore) for making printed circuit boards, mechanicals- housing, heat sinks and diffusers.
Combining both rounds, a total of 61 applicants have been approved with expected investments of ₹6,632 crore generating 46,707 direct employment opportunities, the release noted. The scheme for the production of components of ACs and LED Lights is expected to generate about ₹1,21,049 crore over five years.
Adani Copper Tubes (₹408 crore), LG Electronics India (₹300 crore), Starion India (₹50.10 crore), Kaynes Technology (₹50 crore), Mitsubishi Electric India (₹50 crore) and Swaminathan Enterprises (₹50 crore) have received approval in the second round.
These companies will manufacture copper tubing, compressors, control assemblies and heat exchangers, among other components.
Jindal Polyfilms (₹360 crore), Sahasra Semiconductors (₹20 crore), Konark Fixtures (₹16.55 crore), Wipro Enterprises (₹12 crore), Lumens Aircon (₹10.50 crore), SVN Opto Electronics (₹10.33 crore) , Crompton Greaves Consumer Electricals (₹10.15 crore), Elin Electronics (₹10 crore) and Esko Casting (₹10 crore), have received approval to manufacture LED Light components.
They will manufacture components such as LED chip packaging, LED drivers, LED engines and LED Light Management Systems.
The PLI Scheme on white goods is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry and make India an integral part of global supply chains, the statement said.
The scheme extends an incentive of 6 per cent to 4 per cent on reducing basis on incremental sales for five years subsequent to the base year and one year of gestation period. Domestic Value Addition is expected to grow from the current 15-20 per cent to 75-80 per cent.
The Union Cabinet had approved the PLI Scheme for White Goods (Air Conditioners and LED lights) on April 7 2021, to be implemented from FY2021-22 to FY2028-29 with an outlay of ₹6,238 crore.
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