The Government of India has announced the selection of 24 companies under the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) in its third round. These companies have committed a combined investment of ₹3,516 crore, aimed at boosting domestic manufacturing capabilities and fostering economic growth in the sector.
Investment Commitments and Scope
In the third application window of the PLI Scheme, 38 applications were submitted. After review, 18 new companies were provisionally selected, committing investments of ₹2,299 crore. These include 10 manufacturers of air conditioner components and 8 manufacturers of LED light components.
Additionally, six existing PLI beneficiaries were selected to upgrade to higher investment categories, contributing an extra ₹1,217 crore. Overall, the PLI Scheme now includes 84 companies, which are collectively set to bring investments of ₹10,478 crore and generate production worth ₹1,72,663 crore during the scheme’s duration.
Boost to Manufacturing Capabilities
The selected companies will focus on manufacturing key components for air conditioners, such as compressors, copper tubes, heat exchangers, and BLDC motors. For LED lights, production will include LED chip packaging, LED drivers, light management systems, and metallized films for capacitors.
This initiative aims to boost domestic value addition from the current 15-20% to 75-80%. It is designed to strengthen India’s position in the global supply chain. The focus is on enhancing capabilities in critical industries like air conditioners and LED lights.
Scheme Overview
The PLI Scheme for White Goods was approved by the Union Cabinet in April 2021. It has a budgetary outlay of ₹6,238 crore for implementation over FY 2021-22 to FY 2028-29. The scheme is designed to build a strong component ecosystem for white goods manufacturing. It offers incentives ranging from 6% to 4% on a reducing basis for incremental sales. These incentives are provided over a five-year period, following a one-year gestation phase.
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Economic Impact
The PLI Scheme aims to boost India’s position as a global manufacturing hub for air conditioners and LED lights. It focuses on promoting innovation and reducing dependency on imports. This initiative is expected to create significant economic and employment opportunities. It also aligns with the government’s vision of “Atmanirbhar Bharat” (Self-Reliant India).
By encouraging domestic manufacturing and driving investments, the scheme plays a vital role in India’s path to industrial leadership. It underscores the nation’s commitment to advancing global competitiveness in white goods production.
