The government on Tuesday said it has selected 15 companies, including Adani Copper Tubes, LG Electronics, Mitsubishi Electronics, and Wipro, with a committed investment of Rs 1,368 crore, under the second round of production-linked incentive (PLI) for white goods. Out of the 15 companies, six will make AC components with an investment of Rs 968 crore, said DPIIT Additional Secretary Anil Agrawal.
Agrawal added that nine companies will manufacture LED components with an investment of Rs 460 crore. These 15 firms together will have a total production of Rs 25,583 crore in the next five years. Direct employment generated will be for 4,000 persons.
As many as 19 companies, including LG Electronics and Wipro, had filed applications with a proposed investment of Rs 1,548 crore to avail of benefits under the production-linked incentive scheme for white goods in the second round.
The government had conducted the first round last year and closed applications in September. Till now, it has approved 46 companies before the second round. The total committed investment was Rs 5,264 crore and a total of 61 companies have committed a Rs 6,632-crore investment in both rounds for the next five years, Agrawal said.
He also said production worth Rs 1,22,671 crore will create 46,368 additional direct jobs in five years, and 33 out of 63 are AC (air conditioner) companies. Adani Copper Tubes will invest over Rs 408 crore, LG Electronics has committed to invest over Rs 300 crore. Mitsubishi Electronics has committed an investment of Rs 50 crore in control assemblies, while Jindal Poly Films will invest Rs 360 crore and Wipro will invest Rs 12 crore into LED drivers.
The PLI Scheme for White Goods (PLIWG) was notified in April 2021, to provide financial incentives to boost domestic manufacturing and attract large investments in the white goods manufacturing value chain. Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
The scheme will extend an incentive of 4-6 per cent on net incremental sales (net of taxes) over the base year (FY 2019-20) of goods manufactured in India or net incremental sales of eligible products over the base year or FY 2020-21, whichever is higher, as the case may be and covered under target segments, to eligible companies, for a period of five years subsequent to the base year and gestation period.
Last year in November, the government had provisionally selected 42 firms, including Daikin, Panasonic, Syska and Havells, with a committed investment of Rs 4,614 crore under the first round of the production linked incentive (PLI) scheme for the white goods sector.
A total of 52 companies had filed applications with a committed investment of Rs 5,858 crore under the scheme. The scheme will be implemented over a seven-year period from 2021-22 to 2028-29 and has an outlay of Rs 6,238 crore, which was approved by the Cabinet.
The government in March reopened the application window for its Rs 6,238-crore production-linked incentive (PLI) scheme for air-conditioners (ACs) and LED lights with an aim to accommodate more players as several firms have expressed interest in the initiative.
Read all the Latest News , Breaking News , watch Top Videos and Live TV here.
Comments
0 comment