38 companies have applied for PLI scheme for white goods under third round

NEW DELHI: Thirty eight companies have applied for the third round of Production-Linked Incentive (PLI) Scheme for white goods, said Sanjiv Singh, Joint Secretary, DPIIT.

Singh said, “Over the next three years, these 38 companies are expected to achieve production of about Rs 55,877 crore of components of air conditioners (ACs) and LED lights and generate direct employment of 47,851”.

The investment footprint under the PLI White Goods Scheme has now increased from 16 to 18 states. Investments have been expanded to two additional states, Orissa and Jammu and Kashmir. Eight new districts have also been added to the list making the total districts for investments from 46 to 54.

“The number of manufacturing locations have also increased by 51 bringing the total to 179, up from the previous 128. Incentives under the scheme have a healthy mix of multinational and domestic companies”, said Sanjiv. Additionally, five new foreign companies are investing Rs 245 crore apart from the existing 15 companies who have committed investments of Rs 2,287 crore.

#WATCH | Delhi: Sanjiv Singh, Joint Secretary, Department for Promotion of Industries and Internal Trade (DPIIT) says, ” Response was really good…this time, around 38 companies have given application for committed investment of Rs 4,121 crores…after due evaluation, they will… pic.twitter.com/S1eJHpOGfe

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Sanjiv said, “Thirteen additional MSME companies have also applied for the PLI scheme, increasing the total number of MSMEs to 36, up from earlier 23”. He added, “The committed investment from MSMEs has gone up from Rs.747 crore to Rs 1,042 crore. Together, the committed investment of all 36 MSME companies will now be Rs 1,789 crore”.

The third round of PLI for white goods also saw an interesting trend, with 43 per cent of the investments committed from MSME companies. The PLI scheme is expected to bring an investment of Rs 11,083 crore to the ACs and LED lights component manufacturing ecosystem, creating approximately 80,486 direct jobs.

Major manufacturing clusters are emerging in regions such as Noida-Greater Noida in Uttar Pradesh, Neemrana and Bhiwari in Rajasthan, Aurangabad-Pune in Maharashtra, Sanand in Gujarat, and Sri City in Andhra Pradesh, now informally known as ‘Cooling City’.

Sri City alone hosts six AC manufacturers and 12 component manufacturers. Sanjiv pointed out that prior to 2021, not a single AC compressor was produced in India. Today, the country manufactures eight million compressors, with a domestic AC market of 1.2 million units per year.

The aim was to increase domestic value addition from 25 per cent to 75 per cent. Sanjiv shared his satisfaction that the industry has already achieved about 50 per cent domestic value addition, and with the new PLI scheme, they expect to reach 75-80 per cent before the scheme concludes in 2028-29. (ANI)