Godrej & Boyce, Kirloskar Pneumatic Among 5 AC Parts Makers Selected Under PLI For White Goods

(MENAFN- KNN India) New Delhi, Jan 24 (KNN) Godrej & Boyce, Kirloskar Pneumatic Company, Indo Asia Copper, Pranav Vikas India and Kryon Technology are among the five companies selected in the latest round of production-linked incentive (PLI) scheme for white goods.

The PLI scheme provides incentives ranging fr0m 6% to 4% on incremental sales of products manufactured in the country for a period of five years, following the base year and a one-year gestation period. The scheme is expected to increase domestic value addition fr0m the current 20–25% to 75–80%.

Investment Commitment
All the five firms selected provisionally in the current fourth round of the PLI scheme are engaged in the manufacturing of air conditioner (AC) components. They have together committed an investment of Rs 863 crore.

"These five companies are expected to achieve a total production of Rs 8,337.24 crore and generate 1,799 additional direct jobs by FY 2027–28," Ministry of Commerce and Industry said in a press note.

Scheme Progress So Far
As per official data, a total of 85 companies have so far been selected under the PLI Scheme for White Goods (Air Conditioners and LED Lights) and are expected to make investments of Rs 11,198 crore.

The cumulative production by these companies is projected at Rs 1,90,050 crore over the scheme period.

The Commerce Ministry statement said that as many as eight applicants have been referred to the Committee of Experts (CoE) for detailed examination and recommendations.

Boost to Domestic Manufacturing
The scheme is set to bolster India's domestic manufacturing base, with air-conditioner makers producing critical components such as compressors, copper tubes, heat exchangers, brushless direct current (BLDC) motors, and control assemblies for indoor and outdoor units.

In the LED lighting segment, domestic manufacturing covers components such as LED chip packaging, drivers, engines, light management systems, and metallised capacitor films, among others.

Scheme In Operation Since 2021
The central government had in 2021 approved the PLI Scheme for White Goods (Air Conditioners and LED Lights) with a total outlay of Rs 6,238 crore. The scheme was proposed to be implemented fr0m FY 2021–22 to FY 2028–29.

The PLI Scheme has been under implementation for various sectors and aimed at making India a global manufacturing powerhouse and crucial part of global supply chain.

(KNN Bureau)

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