New Delhi: In line with the Prime Minister’s vision for an ‘Atmanirbhar Bharat,’ the Union Cabinet, chaired by the Prime Minister, approved the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights) on 7th April 2021. With an outlay of Rs. 6,238 Crore, the scheme spans the fiscal years 2021-22 to 2028-29, aiming to incentivize the manufacturing of components and sub-assemblies rather than finished goods. The Department for Promotion of Industry and Internal Trade (DPIIT) is overseeing the implementation of this scheme, one of the 14 PLI schemes of the Government of India.
M/s IFCI Ltd., a public finance institution, has been selected as the Project Management Agency (PMA) for the PLI Scheme for White Goods. A significant achievement of the scheme is that 64 applicants, with a committed investment of Rs. 6,766 crore, have been approved as beneficiaries. The central design aspect focuses on increasing domestic value addition from 20-25% to 75-80% by the end of the scheme.
Investors were given the flexibility to choose between gestation periods up to March 2022 (one year) and up to March 2023 (two years). All 15 projects under the scheme, including those with a gestation period up to March 2022, have been commissioned. These projects have surpassed expectations by achieving 234% of their total threshold investment in less than three years of implementation out of the seven planned years.
A review meeting on 3rd February 2024, chaired by the Hon’ble Union Commerce and Industry, assessed the progress of the 14 PLI Schemes, including the White Goods scheme. The meeting highlighted that the PLI disbursement is on track, and there is no delay in the process.
A mix of multinational and domestic companies, including 13 foreign-owned companies like Daikin, Panasonic, Mitsubishi, Hitachi, Nidec, LG, and Met Tube, have committed to investing about 30% of the total committed investments, totaling Rs. 2,090 crore. The scheme has attracted investments in 26 states, 45 districts, and 128 locations across India, contributing significantly to the generation of employment opportunities.
The PLI Scheme is expected to create approximately 47,851 direct jobs, with 41,739 direct jobs already generated in less than three years. Beneficiaries have achieved a total actual production of Rs. 7,957 Crore by December 2023.
The scheme’s impact extends beyond job creation, leading to the development of a robust component ecosystem in India. High-value components of air conditioners, like compressors, copper tubing, and aluminum stock for foils, which were previously imported, are now being manufactured in significant quantities domestically. The scheme has propelled India closer to self-reliance in crucial sectors of the economy.
DPIIT, with its close interaction and monitoring of the PMA, ensures the efficient functioning of the scheme, marking a significant stride towards realizing the vision of ‘Atmanirbhar Bharat.’
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