Applications have been filed for the production of components that are not manufactured in India presently with sufficient capacity
The production-linked incentive (PLI) scheme for white goods including components for ACs and LEDs has seen 52 companies applying to avail its benefits with an investment proposal of Rs 5,866 crore.
Companies including Daikin, Panasonic, Hitachi, Mettube, Nidec, Voltas, Blue Star, Havells, Amber, EPack, TVS-Lucas, Dixon, R K Lighting, Uniglobus, Radhika Opto and Syska have applied for the scheme, the Department for Promotion of Industry and Internal Trade said.
Applications have been filed for the production of components that are not manufactured in India presently with sufficient capacity.
For Air Conditioners, several companies will be manufacturing compressors, copper tubing, aluminium stock for foils, control assemblies for IDU or ODU, Display units, BLDC motors among other components.
Similarly, for LED Lights LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems, PCBs including metal clad PCBs and Wire-wound inductors etc. will be manufactured in India.
The government expects production of components worth Rs 2.71 lakh crore by these firms over the next five years, it said. The AC component segment has received investment proposals of about Rs 4,995 crore from 31 companies, while 21 companies plan to invest Rs 871 crore for LED components.
As per FICCI Electronics Manufacturing Committee Chairperson Manish Sharma, most of the investments are expected to happen in the next two-three years following which local production for components for AC and LED light is expected to start.
“Participation of 52 companies, in this exercise matters a lot, which means that execution of this investment will diversify the components industry for both across high, medium and small intermediaries,” said Sharma.
Under the PLI scheme for white goods (air conditioners and LED lights), the government has approved a budgetary outlay of Rs 6,238 crore. This will be implemented over FY 2021-22 to FY 2028-29.