Sharma confirms investment commitment of Rs.4,500+ crores from more than 40 organizations
The Government is willing to look at the Phased Manufacturing (PMP) plan for the AC industry to check the imports and increase local value addition and employment, DPIIT Secretary Anurag Jain has told a high level DPIIT-FICCI Investor Roundtable on PLI for White Goods.
The Department for Promotion of Industry & Internal Trade (DPIIT) will now ensure that all these investments coming up under the PLI of White Goods get approvals from the central and state government authorities on fast track so that targets set under the PLI are achieved timely, he said on 26 Nov 2021, responding to the suggestions made by some of the CEOs present in the roundtable to come out with the PMP for the AC industry.
Jain also said that the Government officials were in the process of fast tracking the National Single Window Clearance System aimed at Ease of Doing Business where all applications can be filed and tracked online.
Jain underlined that the PLI scheme has been designed such as to benefit those sectors where India can take lead and also to benefit sunrise sectors and make them ready for global competition.
While appreciating the efforts of the FICCI Electronics and White Goods Committee, DPIIT Additional Secretary Anil Agarwal said that the industry response to PLI for white goods has been overwhelming.
The Government took immense precautions while drafting the scheme so that there are no impediments to the implementation of the scheme going forward, he said.
Sharing the journey of PLI for White Goods, Agrawal said that in almost one year, DPIIT has ensured that the scheme was designed and implemented based on the industry feedback and consensus across the value chain.
Over 150 CEOs/CXOs of the white goods industry participated in the DPIIT-FICCI Investor Roundtable.
Many of these investors in component value chain are new ventures from the Small and medium sector who would now supply to the OEMs and integrate with the Global value chains, according to Agrawal.
He elaborated that the impact of the scheme has been tremendous as manufacturing units in over 50 locations across India are coming up or will benefit from the PLI scheme of white goods in the component chain of AC and LED.
Agrawal said that these units are located in States like Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal.
Manish Sharma, Chair – Electronics and White Goods Manufacturing Committee, FICCI, added, “Our achievements as an industry is commendable.”
He highlighted investment commitment exceeding Rs.4,500 crores from more than 40 organizations across manufacturers, SMEs and MNCs for varied components of ACs and LEDs including the industry of aluminium and copper.
He appreciated the collective wisdom of the Government and the Industry coming together for a common cause, boosting the confidence of both the Government and the investors.
Sharma also appreciated the sectoral associations for their contribution.
The PLI brings with it the commitment with a positive mindset ushering into the new era of backward integration with scale allowing to build competitiveness for export.
Jasbir Singh, Co-Chair Electronics Manufacturing Committee, FICCI, said, “Applaud Government initiative for PLI in our sector. This would have a compounding impact on component landscape for our sector taking local value addition from current levels of 25% to 75% in next 4-5 years. This was missing link in our industry, and we thank DPIIT for rolling out this well thought of and uniquely structured scheme in such a short span.”
The Government has approved PLI Scheme for 13 key sectors with total outlay of Rs.197,291crore. Department for Promotion of Industry & Internal Trade (DPIIT) is coordinating the implementation of all PLI Schemes. DPIIT is also the nodal department for the PLI Scheme for White Goods – Air Conditioners and LED lights sector – with an outlay of Rs.6,238 crores.
The proposal of DPIIT for the PLI Scheme for White Goods for manufacture of components and sub-assemblies of ACs and LED Lights was approved by the Union Cabinet on 7 April 2021. The Scheme is to be implemented over a seven-year period, from FY2021-22 to FY2028-29 and has an outlay of Rs.6,238 crores.
Applications for the Scheme were invited from 15 June 2021 to 15 Sept 2021. Fifty-two companies have filed their application with committed investment of Rs.5,858 crores under the PLI scheme.
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 crores. #investment #manufacturing /fiinews.com
