Voltas, Blue Star among 38 applicants in 3rd round of PLI scheme for white goods

The government has received 38 applications from companies including Daikin, Voltas and Blue Star with proposed investment of Rs 4,121 crore under the production-linked incentive (PLI) scheme for white goods in the third round, of which 20 are for air conditioner components and 18 for LED lights. The value addition in the sector is expected to rise to about 80% from 50% now, officials said.

The government in July reopened the application window for its Rs 6,238-crore PLI scheme for ACs and LED lights to accommodate more players as more firms expressed interest in the initiative.

Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Sanjiv said that the scheme is showing results with value addition rising to

50% from 25% earlier.

“This time, many Indian firms have come forward to avail the benefit of the scheme,” he said.

The number of manufacturing locations has increased by 51, bringing the total to 179, up from the previous 128.

Over the next three years (till 2028-29), 38 companies are expected to achieve production of about Rs 55,877 crore for AC components and LED Lights while generating direct employment for 47,851 people.

As per the DPIIT, five more foreign companies are investing Rs 245 crore apart from 15 existing companies investing Rs 2,287 crore. Also, 13 additional MSMEs have committed investment of Rs 747 crore, increasing the total number of companies to 36, up from 23 which committee Rs 1,042 crore.

“In ACs segment, several investments have been proposed to manufacture high value intermediates of ACs such as Copper Tubes (Plain / Grooved), Aluminium Stock for Foils or Fins for heat exchangers and Compressors which account for almost 50% of Bill of material (BoM) for room Air conditioners,” the DPIIT said in a statement.

In addition to that, applicants have proposed to manufacture control assemblies for IDU or ODU, Heat Exchangers, motors, and Sheet metal components and plastic moulded goods etc. Similarly, LED Lights, LED Chip packaging, LED Drivers, Heat Sinks, LED Engines, and LED Light Management Systems etc. will be manufactured in India.

“Applications have been filed for production of components which are not manufactured in India presently with sufficient capacity,” it said.

Investment footprint under the PLI for white goods scheme has increased from 16 to 18 states/UTs including Odisha and Jammu and Kashmir. In 2022-23, the government disbursed Rs 80 crore to the beneficiary firms.