About 38 companies, including Voltas, Daikin, Orient, have applied for the production-linked incentive (PLI) for white goods—air conditioners (ACs) and LEDs—after the government reopened the application window for the program for the third time.
According to Sanjiv, joint secretary, Department of Industrial Promotion and Domestic Trade (DPIIT) the latest round will attract investments worth Rs 4121 crore.
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In the third round of bidding, the government will spend up to Rs 1,678 crore towards the scheme – which will run till the financial year 2029-29. Of the applicants, 20 are AC components and 18 are LED lights.
However, an applicant approved in the proposed third round will be eligible for PLI for three years only in case of new applicants.
According to Sanjiv, since the program started three years ago, home value addition has increased from 25 percent to almost 50 percent now. Going forward, the government expects value addition to rise to around 80 percent.
In FY29, the 38 companies are expected to generate around Rs 55,877 crore worth of AC components and LED lamps, while generating direct employment for 47,851 people.
Investment under PLI for white goods scheme has increased from 16 to 18 states including Odisha and Jammu and Kashmir. In 2022-23, the government released Rs 80 crore to the beneficiary companies.
The scheme, which was started three years ago, is being implemented for a period of seven years, ending in the financial year 2028-29. The cost of this project is Rs 6,238 crore. The first round of applications was invited in 2021, followed by a second one a year later as the entire allocated fund was not used.
PLI Scheme for white goods is designed to create a complete ecosystem for ACs and LED Lighting Industry in the country and make India an integral part of global supply chains.
“The application window for the PLI Scheme for White Goods was re-opened due to the desire of the Industry to invest more under the scheme, which is a result of the market growth and confidence created due to the production of key components of ACs and LED Lights. India under the PLIWG Scheme,” an official statement said.
First published: October 15 2024 | 12:46 AM IST
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