PLI Scheme for ACs and LEDs Lights Attracts 38 New Companies in India
INDIA: In the third phase of the Production-Linked Incentive (PLI) scheme for air conditioners and LED lights, 38 companies have joined, raising the total number of applicants to 93 since the scheme's launch in April 2021. Prominent participants in this phase include Daikin, Voltas, Blue Star, Amber, and Epack, with a proposed investment totaling US$490 million. In July, the government reopened the application window for the US$742 million PLI scheme for ACs and LED lights to allow additional companies to participate, responding to growing interest. The scheme has significantly benefitted the sector, with value addition rising from 25% to approximately 50%, and industry insiders anticipate this could reach 80% in the coming years. Applicants are expected to recoup around 50-55% of their investment through various incentives, in addition to receiving support from state governments. The Department for Promotion of Industry and Internal Trade (DPIIT) will also assist in setting up manufacturing facilities by coordinating with state authorities.
Over the next three years, through 2028-29, these 38 companies are projected to achieve production valued at approximately US$6.6 billion for AC components and LED lights, while creating direct employment for more than 47,000 people.
Source: Union Cabinet of India