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Eight companies file applications for PLI Scheme for AC components

Nineteen companies have filed applications in the second round for incentives for production-linked incentive scheme for white goods. They have committed investment worth Rs 1,548 crore, which will lead to an incremental production of Rs 26,880 crore over the next five years for air conditioners (ACs) and LED lights. LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Polyfilms, Crompton Greaves, Wipro, Zeco Aircon and Starion India are among the companies that have applied in the second round. This includes eight companies for AC components.

The government had reopened the applications for the scheme in March.

In November, 42 companies, including Daikin Airconditioning India, Amber Enterprises India Ltd, PG Technoplast, , Blue Star Climatech, Havells India, Johnson Controls Hitachi Air Conditioning India Ltd, Voltas, IFB Industries, Dixon Devices, Panasonic India, and Haier Appliances (India) Ltd. were selected under the PLI scheme for AC components. They had committed investments worth Rs 5,858 crore, as compared to the total budget of Rs 6,238 crore.

The second round of applications was invited as the entire allocated funds were not utilised. LG has proposed to make investments worth Rs 300 crore for compressors. Adani Copper Tubes and Zeco Aircon have proposed to make investments worth Rs 408 crore and Rs 100 crore, respectively, for compressors and heat exchangers. Wipro has proposed to make investments worth Rs 12 crore.

Over the next five years, these 19 companies are expected to achieve production of about Rs 26,880 crore of components of ACs and LED lights and generate direct employment for 5,522 persons. Altogether, the scheme is expected to bring Rs 7,074 crore of investments in the component manufacturing ecosystem of ACs and LED lights industry and generate around 200,000 direct and indirect employment opportunities. It is expected to lead to total production of components of ACs and LEDs in India of about Rs 1.07 trillion.

Applications have been filed for production of components that are not manufactured in India presently in sufficient quantities. The investments in air conditioners will lead to manufacturing components across the complete value chain including components which are not manufactured in India with sufficient quantity. At present, there is insignificant manufacturing of certain high value components of ACs like compressors, copper tubing and aluminium stock for foils. Many other components like control assemblies for indoor units (IDU) or outdoor units (ODU), display units, brushless direct current motors, valves etc. are not manufactured in enough quantity. All these components will now be manufactured in India in significant quantities.

The PLI Scheme on white goods is designed to create a complete component ecosystem for ACs and LED lights in India and make the country an integral part of the global supply chains. The scheme extends an incentive of 6 per cent to 4 per cent on reducing basis on incremental sales for a period of five years subsequent to the base year and one year of gestation period. The government estimates that domestic value addition is expected to grow from the current 15-20 per cent to 75-80 per cent.

The PLI scheme was first notified on April 16, 2021, and its guidelines were published on June 4. Interested investors had time up to September 15 last year to apply for the scheme. The application window was opened from March 10 to April 25 this year. “No application shall be accepted after the closure of the application window,” the Department for the Promotion of Industry and Internal Trade had said.

Investments Committed
Commitments by 26 companies selected under air conditioner PLI scheme

How PLI Scheme Works
Minimum incremental investment and sales required to avail PLI

First round of applications closed, status
The first application window for the PLI Scheme for White Goods was open from June 15, 2021 to September 15, 2021. A total of 52 companies filed their applications and out of them, 42 applicants with committed investment of INR 46.14 billion were provisionally selected as beneficiaries. This includes 26 applicants for Air Conditioner manufacturing with committed investments of INR 38.98 billion and 16 applicants for LED Lights manufacturing with committed investments of INR 7.16 billion. Additionally, six applicants proposing FDI from countries sharing land border with India have been advised to submit approval for FDI.

Applicants Provisionally Selected Under the PLI Scheme for White Goods: Air Conditioners
Applicant

 

Products to be manufactured

 

Committed investment (INR millions)

 

Daikin Airconditioning India Private Limited
  • Compressor
  • Control assemblies for IDU or ODU or Remotes
  • Motors
  • Cross flow fan (CFF)
  • Heat exchangers
  • Sheet metal components
  • Plastic molding components
5387
Amber Enterprises India Limited
  • Control assemblies for IDU or ODU or Remotes
  • Motors
  • Cross flow fan (CFF)
  • Heat exchangers
  • Sheet metal components
  • Plastic molding components
4601.80
PG Technoplast Private Limited
  • Control Assemblies for IDU or ODU or Remotes
  • Cross Flow Fan (CFF)
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
3210
EPAC Durables Solutions Private Limited
  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Cross Flow Fan (CFF)
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding component
  • Display Panels (LCD/LED)
3000
Hindalco Industries Limited
  • Copper Tube (plain and/or grooved)
  • Aluminum Stock for Foils or Fins for heat exchanger
5390
Mettube India Private Limited

 

  • Copper Tube (plain and/or grooved)
3002.10

 

IL JIN Electronics India Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Cross Flow Fan (CFF)
1673.30

 

Blue Star Climatech Limited

 

  • Heat Exchangers
  • Sheet Metal Components
1560

 

Havells India Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
1127.10

 

Johnsons Controls Hitachi Air Conditioning India Limited

 

  • Cross Flow Fan (CFF)
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
1006.70

 

Voltas Limited
  • Cross Flow Fan (CFF)
  • Heat exchangers
  • Plastic Molding components
1000

 

Napino Auto and Electronics Limited

 

  • Control Assemblies for IDU or ODU or Remotes
666

 

Bhagwati Products Limited
  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Cross Flow Fan (CFF)
  • Valves & Brass components
  • Heat exchangers
  • Sheet Metal components
  • Pastic Molding components
610
Epavo Electricals Private Limited

 

  • Motors
580

 

IFB Industries Limited
  • Motors
  • Heat exchangers
  • Sheet Metal components
570

 

Lucas-Tvs Limited
  • Control Assemblies for IDU or ODU or Remotes
  • Motors
540

 

Nidec India Private Limited
  •  Motors
519.20

 

Dixon Devices Private Limited
  • Control Assemblies for IDU or ODU or Remotes
510

 

Syrma Technology Private Limited
  • Control Assemblies for IDU or ODU or Remotes
510

 

VVDN Technologies Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Sheet Metal components
  • Plastic Molding components
510

 

Virtuoso Optoelectronics Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Cross Flow Fan (CFF)
  • Valves & Brass Components
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
505

 

East India Technologies Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Sheet Metal components
  • Plastic Molding components
500

 

Magnum Mi Steel Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Heat exchangers
  • Sheet Metal components
500

 

Panasonic India Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
500

 

Sun Home Appliances Private Limited

 

  • Control Assemblies for IDU or ODU or Remotes
  • Motors
  • Cross Flow Fan (CFF)
  • Heat exchangers
  • Sheet Metal components
  • Plastic Molding components
500

 

Tritonvalves Climatech Private Limited

 

  • Valves and brass components

 

500

 

Total 38978.20

TVJ Bureau

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