The Production-Linked Incentive or PLI scheme has been reintroduced by the Union Government, urging manufacturers in the white goods sector to apply. In light of the lukewarm response noted thus far, the Department for Promotion of Industry and Internal Trade (DPIIT) has reopened the application window for this initiative, which covers the manufacturing of air conditioners (ACs) and LED lighting products.
The application window, which was reopened on July 15, is set to close on October 12, 2024. During his address at the CII Consumer Electronics and Durables Summit 2024 in New Delhi, Rajeev Kumar Thakur, the Additional Secretary at DPIIT, pointed out the reasons behind the lackluster response to the scheme. He emphasized that this moment is crucial for boosting investments in India, particularly in light of the government’s increased capital expenditure initiatives.
To date, 66 applicants have been selected as beneficiaries of the PLI scheme, collectively committing investments amounting to ₹6,962 crore in this sector. The Union Cabinet formally approved the PLI scheme for white goods on April 7, 2021. This scheme is designed to promote the manufacturing of components and sub-assemblies specifically for air conditioners and LED lights. It will be executed over a seven-year period, running from the financial year 2021-22 through to 2028-29, with a total financial outlay of ₹6,238 crore.
Under this initiative, participating companies can benefit from an incentive ranging from 4% to 6% on their incremental turnover above the base year, applicable to goods sold domestically as well as those exported to international markets. This incentive framework will be available to eligible firms for a duration of five years.
In the realm of air conditioning component manufacturing, a number of companies have already made significant investments. Notable names include Daikin, Voltas, Hindalco, Amber, PG Technoplast, Epack, Mettube, LG, Bluestar, Johnson Hitachi, Panasonic, Haier, Midea, Havells, IFB, Nidec, Lucas, Swaminathan, and Triton Valves. These firms are well-positioned to leverage the PLI scheme to enhance their production capabilities and contribute to the domestic manufacturing landscape.
Similarly, in the LED lighting sector, several companies have also shown their commitment by investing in this initiative. These include Dixon, RK Lighting, Radhika Opto, Surya, Orient, Signify, Crompton Greaves, Stove Kraft, Cosmo Films, Halonix, Chenfeng, Fulham, Adsun Inventronix, and Luker. Each of these companies plays a vital role in the effort to boost local manufacturing and reduce reliance on imports.
As the deadline for applications approaches, the DPIIT is maintaining a hopeful outlook that heightened awareness regarding the numerous benefits of the PLI scheme will motivate a greater number of manufacturers to engage with the program. This initiative not only aims to boost domestic production but also fosters investment in India’s expanding white goods market, ultimately strengthening the economy and enhancing global competitiveness.
