38 Companies Join PLI Scheme for ACs and LED Lights
New Delhi, India
Thirty-eight companies have applied for the third round of the Production Linked Incentive (PLI) Scheme for White Goods, according to Sanjiv, Joint Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). Over the next three years, these companies are expected to produce components worth Rs 55,877 crore for air conditioners and LED lights, creating 47,851 direct jobs.
The investment footprint has expanded from 16 to 18 states, now including Orissa and Jammu and Kashmir. The number of districts involved has increased from 46 to 54, and manufacturing locations have risen from 128 to 179. The scheme includes both multinational and domestic companies, with five new foreign companies investing Rs 245 crore and fifteen existing companies committing Rs 2,287 crore.
Thirteen additional MSME companies have joined the scheme, raising the total to 36, with committed investments increasing from Rs 747 crore to Rs 1,042 crore. Overall, MSMEs account for 43% of the committed investments. The PLI scheme is expected to bring INR 11,083 crore in investments and create approximately 80,486 direct jobs.
Major manufacturing clusters are emerging in Noida-Greater Noida, Neemrana, Bhiwari, Aurangabad-Pune, Sanand, and Sri City, which is now known as “Cooling City.” Sri City hosts six AC manufacturers and twelve component manufacturers. Before 2021, India did not produce any AC compressors, but now manufactures 8 million compressors annually. The goal is to increase domestic value addition from 25% to 75%, with the industry already achieving 50% and aiming for 75-80% by 2028-29.
Doubts Revealed
PLI Scheme -: PLI stands for Production Linked Incentive. It’s a government program in India that gives financial incentives to companies to boost manufacturing in the country.
White Goods -: White goods are large home appliances like refrigerators, washing machines, and air conditioners. In this context, it refers to air conditioners and LED lights.
DPIIT -: DPIIT stands for Department for Promotion of Industry and Internal Trade. It’s a part of the Indian government that helps businesses grow and trade better.
Sanjiv -: Sanjiv is likely a person working with DPIIT who is involved in the PLI Scheme. He is helping to lead this initiative.
MSMEs -: MSMEs are Micro, Small, and Medium Enterprises. These are small businesses that play a big role in the economy by creating jobs and contributing to production.
Rs 55,877 crore -: Rs 55,877 crore is a large amount of money, specifically 558.77 billion rupees. It’s the value of components expected to be produced under the scheme.
18 states and 54 districts -: This means the PLI Scheme is being implemented in 18 different states and 54 districts across India, showing its wide reach.