Govt Approves 24 Companies for ₹3,516-Crore Investment in White Goods PLI Scheme

Govt Approves 24 Companies for ₹3,516-Crore Investment in White Goods PLI Scheme. The Indian government has taken a major step to boost domestic manufacturing under the Production-Linked Incentive (PLI) scheme for white goods. In the third round of this scheme, authorities selected 24 companies that promised a combined investment of ₹3,516 crore. This initiative strengthens India’s position in global manufacturing and reduces dependency on imports.

Govt Approves 24 Companies for ₹3,516-Crore Investment in White Goods PLI Scheme

Key Highlights of the Announcement

• Selected Companies: Hindalco Industries, LG Electronics, Voltas, and Blue Star Climatech lead the list of approved firms.
• Investment Breakdown: The selected companies include 18 new applicants committing ₹2,299 crore and six existing beneficiaries pledging an additional ₹1,217 crore.
• Focused Sectors: Air-conditioner (AC) components and LED light parts dominate the investment categories.

What Is the PLI Scheme for White Goods?

The PLI scheme for white goods was launched in April 2021 to encourage domestic manufacturing of components critical to air-conditioners and LED lights. With a financial outlay of ₹6,238 crore for FY22 to FY29, the scheme offers incentives ranging from 4% to 6% on incremental sales over five years. This incentive comes after a gestation period, allowing businesses to set up and expand their manufacturing capacities.

Goals of the Scheme:

1. Enhance Domestic Value Addition: Increase value addition in manufacturing from 15-20% to 75-80%.
2. Boost Employment: Generate significant direct and indirect employment opportunities.
3. Strengthen Global Supply Chains: Position India as a competitive player in the global manufacturing ecosystem.

Investment Details

The third round has attracted a diverse range of investments:

• Air-Conditioner Components: Fifteen manufacturers will invest ₹3,260 crore in components like compressors, copper tubes, and brushless DC electric motors (BLDC).
• LED Light Components: Nine firms will contribute ₹256 crore for LED chips, drivers, and packaging.

Major Commitments:

Notable names such as Hindalco Industries, LG Electronics, Voltas, and Blue Star Climatech have committed a combined additional investment of ₹1,173 crore. These firms are expected to drive innovation and efficiency in the white goods sector.

Selection Process and Updates

The Department for Promotion of Industry and Internal Trade (DPIIT) reviewed 38 applications in this round. Among these:

• 18 new applicants were provisionally selected.
• 6 existing beneficiaries upgraded their investment categories, reflecting confidence in the scheme’s potential.
• 13 applications were referred to an expert committee for further review, while one applicant withdrew.

Progress Across All Rounds

Since its launch, the PLI scheme has approved 84 companies across multiple rounds. Together, they have committed investments totaling ₹10,478 crore, aiming to generate an estimated production value of ₹1,72,663 crore by FY29.

Notable Achievements:

• Increased Production: The selected firms are expected to commence production within this fiscal year.
• Global Competitiveness: The initiative strengthens India’s ability to compete with international manufacturing hubs.

Benefits for the Industry

The PLI scheme offers several advantages for the domestic white goods sector:

• Reduced Import Dependency: Increased local production minimizes reliance on imported components.
• Cost Competitiveness: Incentives lower manufacturing costs, making Indian products globally competitive.
• Technological Advancements: Focus on innovation and high-quality manufacturing.

Example: Boosting AC Component Production

By supporting local manufacturers of compressors and BLDC motors, the scheme directly contributes to reducing costs and enhancing efficiency in air-conditioner production.

Challenges and Future Outlook

While the PLI scheme shows promise, certain challenges remain:

1. High Initial Costs: Setting up manufacturing facilities requires significant capital.
2. Skill Gaps: Bridging the gap in technical expertise is crucial for sustained growth.
3. Global Competition: Competing with established players like China requires continuous innovation.

Despite these challenges, the government’s efforts are a step toward achieving self-reliance. The selected companies’ investments are expected to pave the way for long-term benefits.

Why This Matters for India

India’s push for domestic manufacturing aligns with its broader vision of becoming a global manufacturing hub. The PLI scheme’s success could lead to:

• Economic Growth: Increased production and exports contribute to GDP growth.
• Job Creation: New facilities generate direct and indirect employment opportunities.
• Technological Advancement: Encourages research and development in critical sectors.

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Conclusion

The third round of the PLI scheme for white goods marks a significant milestone in India’s manufacturing journey. With a focus on AC and LED component production, the approved companies’ investments promise a brighter future for the industry. As these firms ramp up production, India’s self-reliance in white goods manufacturing will strengthen, boosting its global competitiveness. The government’s continued support and strategic initiatives will be key to sustaining this momentum.