Goyal tells industry to become global champions
Sixty-one companies have used the Production Linked Incentive (PLI) scheme for white goods to set up components manufacturing plants at 111 locations across 14 States and Union Territories with investment commitments of Rs.6,632 crore.
Speaking at the DPIIT-FICCI Investor Roundtable on PLI for White Goods on 22 July 2022 in New Delhi, Commerce and Industry Minister Piyush Goyal said that the PLI scheme is being used to only encourage the industry to take the first few steps to compete in the global market and give it the initial push to bring scale to businesses.
The White Goods Sector with focus on Airconditioning and LEDs was one of the first sectors which was identified as the low-hanging fruit for encouraging domestic manufacturing.
Noting the demand from AC and LED sector to open them for Free Trade Agreements, Goyal said that the industry should now aim at becoming global champions.
“You want to become global champions. You want to compete with the rest of the world on an equal footing from a position of strength. India is not a weak country. We are not looking for sops. We are not scared of any competition. That’s the message this room should give out to rest of the world,” said the Minister.
DPIIT Secretary Anurag Jain assured that his department will facilitate in resolving the issues with the local and Central government authorities so that there are no undue delays in clearances and permissions for these projects.
Significant capacities are coming up for components like Compressors, Control Assembly for IDU/ODU, Aluminum stock and Copper Tubes for Air conditioners and LED Drivers, Mechanical Housing and PCB including metal clad PCBs among others, according to Anil Agrawal, Additional Secretary, DPIIT.
Such initiatives will create a robust component eco-system in the country and 15 projects have already been commissioned, he added.
FICCI Director General Arun Chawla said, “We all in the industry are working together with a goal to strengthen the local value and supply chain and to expand India’s role in the global supply chain of White Goods sector.”
Focusing on components has its own set of advantages and will bring the predictability in supply chain which is an advantage that is needed in today’s uncertain times to stay and capture the market, elaborated Subhrakant Panda, Senior Vice President, FICCI.
The Investors’ Round Table on PLI for White Goods was jointly organized by DPIIT and FICCI in association with the industry associations RAMA, CEAMA, ELCOMA and ELCINA. CEOs of 61 PLI beneficiaries of white goods participated in the meeting.
The Cabinet had given approval to the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights) to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs.6,238 Crore on 7 April 2021.
The scheme is expected to lead to total production of components of ACs and LED Lights of about Rs.122,671 crore over five years.
The investments committed under the PLI are spread across India, which will also promote a balanced economic development of the country.
These units are located across States like Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal and one Union Territory Daman & Diu. fiinews.com
