White Goods

A total of 84 companies under the Production-Linked Incentive (PLI) Scheme for White Goods, focusing on Air Conditioners (ACs) and LED Lights, are set to contribute an investment of ₹10,478 crore. This initiative is expected to generate production worth ₹1,72,663 crore during the scheme’s implementation period.

In the third round of the scheme, 24 beneficiaries have committed ₹3,516 crore in investments. The third round of the online application window for the PLI Scheme witnessed 38 applications, out of which 18 new companies have been provisionally selected. These include 10 manufacturers of AC components and 8 manufacturers of LED Lights, committing investments totalling ₹2,299 crore. Additionally, six existing PLI beneficiaries have been provisionally approved to upgrade to higher investment categories, pledging an additional ₹1,217 crore.

Out of the remaining applicants, 13, including two existing beneficiaries, are being referred to the Committee of Experts (CoE) for further examination and recommendations. One applicant has opted to withdraw from the scheme, reducing the total count of participating companies to 84.

The scheme is expected to bolster India’s manufacturing capabilities in the white goods sector, enhancing economic growth and creating a robust ecosystem for AC and LED components. For air conditioners, companies will manufacture critical components such as compressors, copper tubes (plain or grooved), control assemblies for indoor and outdoor units, heat exchangers, and BLDC motors. Similarly, for LED Lights, production will include LED chip packaging, drivers, engines, light management systems, and metallised films for capacitors, among others.

The Union Cabinet approved the PLI Scheme for White Goods on 7 April 2021, with a financial outlay of ₹6,238 crore for the period spanning FY 2021-22 to FY 2028-29. The Department for Promotion of Industry and Internal Trade (DPIIT) notified the scheme on 16 April 2021.

Designed to strengthen India’s manufacturing ecosystem, the PLI Scheme offers financial incentives ranging from 6% to 4% on a reducing scale for incremental sales over five years, following a one-year gestation period. It also aims to enhance domestic value addition in the AC and LED sectors, increasing it from the current 15-20% to an impressive 75-80%.

Cover photo: OpenAI


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