As many as 38 companies, including Voltas, Daikin and Orient, have applied for production-linked incentives (PLI) for home appliances (air conditioners (ACs) and LEDs) after the government reopened the application window for the scheme for the third time.
According to Sanjiv, joint secretary, Department for Promotion of Industry and Internal Trade (DPIIT), the latest round will attract investments worth Rs 4,121 crore.
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During the third round of application, the government will spend up to Rs 1,678 crore on incentives for the scheme, which will be valid until the financial year 2029-29. Among the applicants, 20 are for air conditioning components and 18 are for LED lights.
However, an applicant approved in the proposed third round would be eligible for PLI for a maximum of three years only in case of new applicants.
According to Sanjiv, since the implementation of the plan three years ago, domestic value addition has increased from 25 percent to around 50 percent today. In the future, the government expects the value added to increase to around 80 percent.
By FY29, 38 companies are expected to achieve production of approximately Rs 55,877 crore for air conditioning components and LED lights, while generating direct employment for 47,851 people.
The investment footprint under the PLI scheme for home appliances has increased from 16 to 18 states/UTs, including Odisha and Jammu and Kashmir. In 2022-23, the government disbursed Rs 80 crore to beneficiary companies.
The plan that was implemented three years ago will be implemented over a period of seven years, ending in the financial year 2028-29. The outlay of the scheme is Rs 6,238 crore. The first round of applications was called in 2021, followed by the second round a year later, as not all of the allocated fund was used.
The PLI scheme for home appliances has been designed to create a complete ecosystem of components for the air conditioning and LED lighting industry in the country and make India an integral part of global supply chains.
“The application window for the PLI Program for home appliances has been reopened due to industry appetite to invest more under the programme, which is a result of market growth and confidence generated due to manufacturing of key air conditioning and lighting components LED in India under the PLIWG scheme,” an official statement said.
First published: October 15, 2024 | 00:46 IS
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