The Production-Linked Incentive (PLI) Scheme for White Goods has garnered significant interest in its third round, attracting a total of 38 applications. Following a review process, the government has provisionally selected 24 companies, comprising 18 new entrants and 6 existing beneficiaries opting for higher investment categories.
These companies have committed a total investment of Rs 3,516 crore towards the production of components for air conditioners (ACs) and LED lights.
The 18 new companies include 10 manufacturers of AC components and 8 manufacturers of LED light components, with a committed investment of Rs 2,299 crore. The remaining Rs 1,217 crore investment comes from 6 existing PLI beneficiaries who have chosen to upgrade their investment levels.
A Committee of Experts (CoE) will further examine 13 applications, including two from existing applicants. Additionally, one applicant has withdrawn from the scheme.
With the inclusion of these new participants, the PLI Scheme for White Goods now has a total of 84 companies, poised to bring in investments worth Rs 10,478 crore. This is expected to generate production worth Rs 1,72,663 crore.
The scheme aims to strengthen India’s manufacturing capabilities in the AC and LED lighting sectors by encouraging the production of essential components such as compressors, copper tubes, heat exchangers, and BLDC motors for ACs, and LED chip packaging, LED drivers, LED engines, and LED light management systems for LED lights.
Launched in April 2021 with an outlay of Rs 6,238 crore, the PLI Scheme for White Goods seeks to establish a comprehensive component ecosystem in India, integrating the country into the global supply chain.
The scheme provides incentives ranging from 4% to 6% on incremental sales for five years, following a base year and a one-year gestation period. This initiative is projected to increase domestic value addition from the current 15-20% to 75-80%.
