White goods PLI investors set up 111 units, says Piyush Goyal

Pitching the scheme as a “win-win” for both people and the industry, Goyal said elevated manufacturing of white goods will create a large number of jobs.

White goods PLI investors set up 111 units, says Piyush Goyal
The government has selected companies, including Daikin, Hitachi, Panasonic, Voltas, Mettube, Nidec, Dixon and Havells, to obtain benefits under the scheme that is being implemented over a seven-year period through FY29.

The 61 companies selected under the production-linked incentive scheme (PLI) for white goods have set up component manufacturing facilities at as many as 111 locations across 14 states and one Union Territory, commerce and industry minister Piyush Goyal said, highlighting the encouraging response to the scheme.

Pitching the scheme as a “win-win” for both people and the industry, Goyal said elevated manufacturing of white goods will create a large number of jobs.

The government has selected companies, including Daikin, Hitachi, Panasonic, Voltas, Mettube, Nidec, Dixon and Havells, to obtain benefits under the scheme that is being implemented over a seven-year period through FY29. Eligible investors in air-conditioners, LED lights and such components will get incentives of 4-6% on incremental sales (to be calculated over the base year of 2019-20) of products manufactured in India. The total incentives of `6,238 crore will be disbursed over five years, according to an initial estimate.

Speaking at an investor roundtable, Goyal said that the PLI scheme is being used to give industry players the initial push to scale up their businesses. He, however, reiterated that in the long run, industry in general shouldn’t rely on the crutches of government subsidy.

“In the long-run, no country has succeeded in becoming a prosperous nation on the back of government support,” Goyal said.

Anil Agrawal, additional secretary with the department for the promotion of industry and internal trade, said that the industry response to the PLI scheme for white goods has been “tremendous”. He exuded confidence that the scheme will help increase value addition in the white goods sector from the current 25% to 75-80% by 2029.

These units are located across states like Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal, and one Union Territory —Daman & Diu.

The companies have pledged to invest `6,632 crore and generate 46,368 direct employment opportunities. The scheme is expected to lead to a total production of components of ACs and LED lights of about Rs 1.23 trillion over five years.

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