Five Firms to Invest ₹863 Crore Under PLI White Goods
New Delhi: The Ministry of Commerce and Industry has provisionally selected five companies under the fourth round of the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights), according to an official release issued today.
The ministry said the five selected applicants have committed an investment of ₹863 crore and are expected to achieve a total production of ₹8,337.24 crore by the financial year 2027–28. The projects are also expected to generate 1,799 additional direct jobs during the same period.
The selection followed the evaluation of 13 applications received in the fourth round of the scheme. The ministry stated that eight applicants have been referred to the Committee of Experts for detailed examination and recommendations. Details of the provisionally selected applicants have been placed in an annexure to the release.
The ministry said the latest round of approvals is expected to support expansion of component manufacturing capacity in the white goods sector and contribute to investment-led growth in related industries such as metals, electronics, plastics and logistics. It added that increased localisation of components under the scheme is intended to reduce import dependence and improve the competitiveness of domestic manufacturers in both the domestic and export markets.
The companies selected in the latest round are Kirloskar Pneumatic Company Limited, Indo Asia Copper Limited, Godrej & Boyce Manufacturing Company Ltd, Kryon Technology Private Limited, and Pranav Vikas (India) Private Limited. According to the ministry, these firms will manufacture components primarily for air conditioners, including compressors, motors, heat exchangers, copper tubes, control assemblies for indoor and outdoor units, sheet metal components, plastic moulding parts, valves and cross-flow fans.
The ministry said that under the scheme, manufacturers of air conditioners and LED lights will also produce components such as LED chip packaging, LED drivers, LED engines, LED light management systems and metallised films for capacitors within the country.
Overall, a total of 85 companies have been selected so far under the PLI Scheme for White Goods (Air Conditioners and LED Lights). These companies are expected to invest ₹11,198 crore over the scheme period, leading to cumulative production of ₹1,90,050 crore, according to the official release.
The Production-Linked Incentive Scheme for White Goods was approved by the Union Cabinet on April 7, 2021, with a total outlay of ₹6,238 crore and is being implemented from FY 2021–22 to FY 2028–29. The scheme was subsequently notified by the Department for Promotion of Industry and Internal Trade on April 16, 2021.
According to the ministry, the scheme aims to create a domestic component ecosystem for the air conditioners and LED lights industry and integrate India into global supply chains. Incentives ranging from 6 per cent to 4 per cent on incremental sales are provided for a period of five years after a base year and a one-year gestation period, as per scheme guidelines.
The ministry further said domestic value addition under the scheme is expected to increase from the present level of 20–25 per cent to 75–80 per cent over time.
– global bihari bureau
