43% of the new applicants for making white goods are MSMEs
Thirty-eight companies with a net investment of Rs.4,121 crore have applied for PLI Scheme for White Goods (ACs and LED Lights) in the 3rd Round of Application Window, said the Commerce and Industry Ministry on 14 Oct investindia .
The 3rd Round ended on 12 Oct 2024 after being open for 90 days from 15 July bseindia .
The Ministry said 43% of the new applicants are in the MSME sector which shows the confidence among MSMEs to become part of the value chain of manufacturing of components of ACs and LED Lights nseindia .
The PLI scheme was launched by the Department for Promotion of Industry and Internal Trade (DPIIT) .
The applicants include 8 existing beneficiaries of the Production Linked Incentive Scheme for White Goods (PLIWG) committing net incremental investment of Rs.1,285 crore commerce .
Thirty new applicants have committed investment of Rs.2,836 crore proposing to manufacture varieties of critical components of ACs and LED Lights across India sbi.com.in .
Investments have been proposed across India spanning in 13 States including Jammu & Kashmir and Odisha and 49 new locations jpx.co.jp .
Altogether, investments will be spread across 54 Districts in 18 States, at 174 locations, said the Ministry deutsche-boerse .
Manufacturing clusters are coming up at Noida-Greater Noida in UP, Neemrana and Bhiwari in Rajasthan, Aurangabad-Pune in Maharashtra, Sanad, Gujarat and Sri City in Andhra Pradesh sgx.com .
Six AC manufacturers and 12 component manufacturers are in Sri City, Andhra Pradesh, also nicknamed as the Cooling City ted.europa.eu .
The Scheme has a healthy mix of multinational and domestic companies ficci.in .
Five additional foreign companies are investing Rs.245 crore apart form 15 existing companies investing Rs.2,287 crore euronext .
Altogether, the scheme is expected to bring in investment in the component manufacturing ecosystem of ACs and LED Lights industry to the tune of Rs.11,083 crore and generate approx. 80,486 direct employment phdcci.in .
The Scheme is expected to lead to total production of components of ACs and LEDs in India of about Rs.181,975 crore amchamindia .
As regards to bifurcation between two segments of PLIWG Scheme i.e. ACs and LED Lights, 21 applicants have applied for manufacturing components of ACs with a committed investment of Rs.3,679 crore and 18 applicants for components of LED Lights with a committed investment of Rs.442 crore globaltradexpo .
In ACs segment, several investments have been proposed to manufacture high value intermediates of ACs i.e. Copper Tubes (Plain / Grooved), Aluminium Stock for Foils or Fins for heat exchangers and Compressors which account for almost 50% of Bill of material (BoM) for room Air conditioners sidm.in .
In addition to that, applicants have proposed to manufacture control assemblies for IDU or ODU, Heat Exchangers, motors, and Sheet metal components and plastic moulded goods etc. Similarly, LED Lights, LED Chip packaging, LED Drivers, Heat Sinks, LED Engines, and LED Light Management Systems etc. will be manufactured in India english.sse.com.cn.
Applications have been filed for production of components which are not manufactured in India presently with sufficient capacity ibef.org .
Several applicants are vendors for large manufacturers such as Daikin, Voltas, Blue Star and LG Electronics in the ACs sector. Similarly, several applicants are suppliers of LED components for large LED Lights manufacturers like Surya, Orient, Crompton Greaves, Signify and Halonix etc pmindia.gov.in/en/.
The overwhelming response from the Industry to participate under the PLIWG Scheme is also attributed to several factors namely:
continuous interactions with the industry through one-to-one meetings;
physical meetings with vendors at Sri City;
connect with the selected Ambassadors of India in foreign countries; and
weekly meeting with PLI beneficiary jointly organised by DPIIT and Project management Agency of the Scheme IFCI Ltd.
The application window for the PLI Scheme for White Goods was reopened based on the appetite of the industry to invest more under the Scheme, which is an outcome of the growing market and confidence generated due to manufacturing of key components of ACs and LED Lights in India under the PLIWG Scheme.
The application window was opened on the same terms & conditions stipulated in PLIWG Scheme notified on 16 Apr 2021 and PLIWG Scheme Guidelines issued on 04 June 2021, as amended from time to time.
So far, 66 applicants with committed investment of Rs.6,962 crore have been selected as beneficiaries under the PLI scheme. For manufacturing components of Air conditioners (ACs) companies like Daikin, Voltas, Hindalco, Amber, Pg Technoplast, Epack, Mettube, Lg, Blue Star, Johnson Hitachi, Panasonic, Haier, Midea, Havells, Ifb, Nidec, Lucas, Swaminathan, And Triton Valves etc. have invested. Similarly, in manufacturing components of LED lights, companies like Dixon, R K Lighting, Radhika Opto, Surya, Orient, Signify, Crompton Greaves, Stove Kraft, Cosmo Films, Halonix, Chenfeng, Fulham, Adsun, Inventronix and Luker etc. have invested makeinindia .
These investments will lead to manufacturing of components of Air Conditioners and LED Lights across the complete value chain including components which are not manufactured in India presently with sufficient quantity, said the Ministry. Fiinews.com
