The government on Monday said that industry’s response to the Production Linked Incentive Scheme (PLI) for white goods continued to remain muted and suggested that it apply for the sops at least in the ongoing third round.
“Response has been muted to the PLI in white goods. In the past two rounds the amount of applications which we were expecting, sufficient response has not come due to various reasons,” additional secretary in the Department for Promotion of Industry and Internal Trade Rajiv Singh Thakur said.
The window for applying for setting up manufacturing units under the PLI Scheme for White Goods (Air Conditioners and LED Lights) has been opened for the third time. The third round of the application process opened on July 15 and will close on October 12.
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The first round of applications were invited in 2021 and second round in 2022. The scheme itself was notified in 2021 with a total outlay of Rs 6,238 crore to provide 4% to 6% of the incremental production value as incentive. The scheme will run for seven years till 2028-29.
In the first two rounds, 66 applicants with committed investment of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme for manufacturing components of air conditioners and LED lights. According to the available data, till December 2024, Rs 2721 crore of investments in the sector have materialised.
For manufacturing components of ACs companies like Daikin, Voltas, Hindalco, Blue Star, Hitachi, LG, Panasonic, Haier, Havells, IFB and Lucas are among the selected applicants. Within LED lights component manufacturing Dixon, Surya, Orient, Crompton Greaves and Halonix are among the companies that are setting up manufacturing units.
Some units have already started production and in 2023-24, Rs 65 crore was given as incentives. As production is expected to pick up as more units become operational, Rs 298 crore has been set aside for incentives to the PLI companies in the white goods sector.
Thakur, speaking at the CII’s Consumer Electronics and Durable Summit, also said that overall private sector investments have not been growing as per expectations and said the government will be happy to respond to any issues and challenges faced by the industry.
Invest India
Thakur said that the mandate of Invest India has been expanded to include promotion of domestic investments too. Earlier, Invest India was discharging the role of overseas investment promotion and facilitation agency.
“Idea is to promote more and more domestic investments. Whether you are facing any challenges at the level of state governments, municipal corporations regarding land, land use changes, electricity related issues or any other state laws. Those issues can be taken care of by Invest India in a more structured manner,” he added.
Earlier speaking at the same event DPIIT Secretary Amardeep Singh Bhatia said industry should not just look at current domestic demand to commit investments, they should look at demand in the future and export markets in addition to the domestic market.
From: financialexpress
Financial News
