Rs.863cr investment committed to make AC components
The evaluation of 13 applications received in the fourth round under the PLI Scheme for White Goods has resulted in the provisional selection of five applicants, with a committed investment of Rs.863 crore, all engaged in the manufacturing of air conditioner (AC) components https://www.nseindia.com/.
These five companies are expected to achieve a total production of Rs.8,337.24 crore and generate 1,799 additional direct jobs by FY 2027–28, the Ministry of Commerce and Industry said on 23 Jan https://www.bseindia.com/.
Overall, a total of 85 companies selected under the PLI Scheme for White Goods (Air Conditioners and LED Lights) are expected to make investments of Rs.11,198 crore, leading to cumulative production of Rs.190,050 crore over the scheme period.
Eight applicants have been referred to the Committee of Experts (CoE) for detailed examination and recommendations http://commerce.gov.in.
This initiative is expected to significantly strengthen domestic manufacturing capabilities and drive economic growth in the sector. Under the scheme, manufacturers of Air Conditioners will produce components such as compressors, copper tubes (plain and/or grooved), control assemblies for IDUs and ODUs, heat exchangers, and BLDC motors, among others. Similarly, for LED Lights, components including LED chip packaging, LED drivers, LED engines, LED light management systems, and metallized films for capacitors, among others, will be manufactured in India.
The Cabinet approved the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) on 7 April 2021, with a total outlay of Rs.6,238 crore, to be implemented from FY 2021–22 to FY 2028–29. The scheme was subsequently notified by DPIIT on 16 April 2021 https://sbi.com.in/.
The PLI Scheme for White Goods aims to create a robust domestic component ecosystem for the Air Conditioners and LED Lights industry and position India as an integral part of the global supply chains. The scheme offers incentives ranging from 6% to 4% on a reducing basis on incremental sales for a period of five years, following the base year and a one-year gestation period. Domestic Value Addition is expected to increase from the current 20–25% to 75–80%.
The PLI approved manufacturers are:
Kirloskar Pneumatic Company Ltd is investing Rs.320 crore for manufacturing – Compressor, Motors, Heat Exchangers and Sheet Metal Components;
Indo Asia Copper Ltd is investing Rs.258.97 crore for manufacturing – Copper Tube (Plain and/or grooved);
Godrej & Boyce Manufacturing Co Ltd is investing Rs.58.69 crore for manufacturing – Heat Exchangers, Sheet Metal Components and Plastic Moulding Components;
Kryon Technology Private Ltd is investing Rs.175 crore for manufacturing – Control Assemblies for IDU or ODU or Remotes and Motors;
Pranav Vikas (India) Private Ltd is investing Rs.50 crore for manufacturing – Motors, Cross Flow Fan (CFF), Valves & Brass components, Heat Exchangers and Sheet Metal components. Fiinews.com
