Five companies have been provisionally selected in the fourth round of the Production-Linked Incentive (PLI) Scheme for White Goods, with a committed investment of Rs 863 crore, the Ministry of Commerce & Industry said on Friday.
All five applicants are engaged in manufacturing air conditioner (AC) components and are expected to generate production worth Rs 8,337.24 crore and create 1,799 direct jobs by FY 2027–28.
Overall investment to touch Rs 11,198 crore
With the latest round, a total of 85 companies have now been selected under the PLI Scheme for White Goods, covering air conditioners and LED lights. These firms are expected to invest Rs 11,198 crore and achieve cumulative production of Rs 1.90 lakh crore over the scheme period, the government said.
The Union government said eight applicants from the fourth round have been referred to the Committee of Experts (CoE) for detailed examination and recommendations. Details of the provisionally selected companies have been placed in an annexure. Under the scheme, AC manufacturers will produce key components such as compressors, copper tubes, control assemblies for indoor and outdoor units, heat exchangers and BLDC motors.
For LED lights, the focus will be on manufacturing LED chip packaging, LED drivers, LED engines, light management systems and metallised films for capacitors.
Scheme aims to boost value addition, supply chains
The PLI Scheme for White Goods was approved by the Union Cabinet on April 7, 2021, with an outlay of Rs 6,238 crore and is being implemented from FY 2021–22 to FY 2028–29. The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on April 16, 2021.
It offers incentives ranging from 6 per cent to 4 per cent on incremental sales for five years after a one-year gestation period. The government expects domestic value addition in the sector to rise from the current 20–25 per cent to 75–80 per cent, strengthening India’s position in global supply chains.
FAQs | PLI Scheme for White Goods
Q. What is the PLI Scheme for White Goods?
The Production-Linked Incentive (PLI) Scheme for White Goods is a government initiative to boost domestic manufacturing of air conditioners and LED lights by offering financial incentives on incremental sales.
Q. How many companies were selected in the fourth round?
Five companies have been provisionally selected in the fourth round of the scheme.zeeze
Q. What is the total investment committed in this round?
The five selected companies have committed an investment of Rs 863 crore.
Q. What kind of products will these companies manufacture?
All five companies will manufacture air conditioner components, including compressors, copper tubes, control assemblies, heat exchangers and BLDC motors.
Q. How much production and employment is expected from this round?
The companies are expected to generate production worth Rs 8,337.24 crore and create 1,799 direct jobs by FY 2027–28.
Q. What is the total investment under the PLI Scheme for White Goods so far?
With the fourth round, 85 companies have been selected under the scheme, with total expected investment of Rs 11,198 crore.
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