Nineteen companies, including LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Crompton Greaves and Wipro, have filed applications in the second round for incentives under the Rs 6,238-crore production-linked incentive scheme for white goods.
The companies have pledged investments of Rs 1,548 crore, which will lead to an incremental production of Rs 26,880 crore over the next five years.
Other applicants include Jindal Poly films, Zeco Aircon, Starion India and Swaminathan Enterprises. Eight firms have applied for incentives for making AC components, while 11 applicants want to manufacture LED bulbs.
The government last month said it would reopen the application window for the PLI scheme for ACs and LED bulbs to benefit more players, acceding to industry requests.
The PLI scheme was first notified on April 16, 2021, and its guidelines were published on June 4. Interested investors had time up to September 15 last year to apply for the scheme. The application window was opened from March 10 to April 25 this year. “No application shall be accepted after the closure of the application window,” the Department for the Promotion of Industry and Internal Trade had said.
In November 2021, the government had selected 42 companies, including Daikin, Hitachi, Panasonic, Voltas, Blue Star, Mettube, Dixon and Havells, which had committed investments of Rs 4,614 crore for incentives under the PLI scheme. Six other applicants proposing foreign direct investment were asked to seek the necessary approval and one of them has received it.
Of the selected candidates, 26 companies had pledged investments of Rs 3,898 crore in component manufacturing for ACs, while 16 were to invest Rs 716 crore in making LED parts.
The incentives will flow in from the next fiscal at 6% (if the investments start from FY22) and will be trimmed to 5% by FY25 and 4% in FY27. The scheme is expected to raise the level of domestic value addition in these segments from the current 15-20% to 75-80%.
The selected companies will produce components of ACs and LED bulbs that are not usually manufactured in India now. The total incentives of Rs 6,238 crore are proposed to be extended over five years.