PLI scheme for white goods: 5 AC component makers selected under latest round, commit ₹863 crore investment

Five companies have been provisionally selected under the fourth round of the Production-Linked Incentive (PLI) scheme for white goods, the commerce ministry said on Friday.

The provisionally selected companies in the fourth round are Kirloskar Pneumatic Company Limited, Indo Asia Copper Limited, Godrej & Boyce Manufacturing Company Ltd, Kryon Technology Private Limited and Pranav Vikas (India) Private Limited.

The selected firms, all involved in manufacturing air conditioner (AC) components, have committed investments of ₹863 crore and target production of over ₹8,337 crore by FY 2027–28.

The companies are also expected to generate 1,799 additional direct jobs during the period.

With the latest additions, a total of 85 companies have now been selected under the PLI scheme for white goods covering air conditioners and LED lights.

These firms are expected to invest ₹11,198 crore and generate cumulative production of about ₹1.90 lakh crore over the duration of the scheme.

A total of 13 companies had submitted applications under the fourth round of the PLI scheme for white goods, of which eight have been referred to a Committee of Experts for detailed examination and recommendations.

The application window for Round 4, originally open from September 15 to October 14, was extended till November 10 "in view of the strong industry response and increasing investment appetite under the Scheme."

Under the scheme, air conditioner manufacturers will produce key components like compressors, copper tubes, control assemblies for indoor and outdoor units, heat exchangers and brushless direct current (BLDC) motors.

In the LED segment, components including LED chip packaging, drivers, engines, light management systems and metallised films for capacitors will be manufactured domestically.

The scheme “aims to create a robust domestic component ecosystem for the Air Conditioners and LED Lights industry and position India as an integral part of the global supply chains,” the ministry said.

The Union Cabinet had approved the scheme on April 7, 2021, with a total outlay of ₹6,238 crore for implementation from 2021–22 to 2028–29.

The scheme was subsequently notified by the Department for Promotion of Industry and Internal Trade on April 16, 2021.

It offers incentives ranging from 6%-4% on incremental sales for five years, following a base year and a one-year gestation period.