Business

Government Approves Rs 3,516 Crore Investment For White Goods Sector Under PLI Scheme

The government has approved investment proposals totalling Rs 3,516 crore from 24 companies in the third round of applications for the Production Linked Incentive (PLI) scheme for white goods.

The scheme, which includes air conditioners (ACs) and light-emitting diodes (LEDs), was announced by the Department for Promotion of Industry and Internal Trade (DPIIT) on Monday.

Of the 24 companies that applied, the government selected 18 for their commitment to invest Rs 2,299 crore. This includes 10 AC component manufacturers and 8 LED light manufacturers. Notable companies selected for the scheme include Voltas, MIRC Electronics, and Lumax Industries.

Provisional Selection For Higher Investment Categories

In addition to the 18 selected companies, six applicants, including existing PLI beneficiaries, have been provisionally chosen for upgrading to higher investment categories.

These six companies have pledged an additional investment of Rs 1,217 crore. Among the companies in this category are Hindalco Industries, LG Electronics India, and Blue Star Climatech.

Government’s PLI Scheme

The DPIIT also mentioned that one applicant decided to withdraw from the scheme. Overall, 84 companies are now participating in the PLI scheme for white goods, with expected investments worth Rs 10,478 crore. These investments are projected to generate production worth Rs 1,72,663 crore.

The PLI scheme for white goods aims to establish a comprehensive component ecosystem for the AC and LED light industries in India. It also seeks to integrate India into global supply chains, boosting the country’s manufacturing capabilities.

Government’s PLI Scheme Timeline & Funding

Launched in April 2021, the PLI scheme is being implemented over seven years and is set to conclude in the financial year 2028-29. With an outlay of Rs 6,238 crore, the scheme has already seen two rounds of applications one in 2021 and another in 2022 due to underutilization of the initially allocated funds.

The third round of applications was opened in response to increased industry interest and the demand for further investment under the scheme.

Also Read: India Takes Lead In Technological Innovation, Says World Economic Forum

Purnima Mishra

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