White goods sector shines in PLI push

New Delhi: Almost 40 per cent of the targeted investment has been made in less than three years of implementation of the production-linked incentive (PLI) scheme on white goods. All 15 projects for the gestation period 2021-22 have been commissioned, achieving 234 per cent of their total threshold investment, official sources told Bizz Buzz.

The government had approved the PLI scheme for white goods like air conditioners and LED lights with a total outlay of Rs6,238crore in April 2021. The Department for Promotion of Industry & Internal Trade (DPIIT) implements the PLI scheme, with the public finance institution IFCI Ltd being the project management agency (PMA) for the scheme.

The DPIIT has approved 64 applicants with committed investment of Rs6,766crore as beneficiaries under the scheme. A key design aspect of the PLI scheme for white goods is that it does not incentivize production of finished goods, but only the manufacturing of components and sub-assemblies, the sources said, adding that this would increase domestic value addition from 20-25 per cent to 75-80 per cent at the end of the scheme.

Investors were given the option to choose one of the two gestation periods—up to March 2022 (one year) and up to March 2023 (two years). Regular stakeholder review meetings are organized with PLI beneficiaries ensuring that the issues of the companies are resolved in a timely and effective manner.

The companies opting for one year of gestation period are eligible for PLI in 2023-24 based on achieving the threshold investment and net incremental sales in 2022-23. Their online applications are under examination by the PMA. The PLI will be disbursed by March 2024. There is no delay in PLI disbursement under the scheme, the sources said.

The PLI scheme has attracted multinational as well as domestic companies. The 13 foreign companies include Daikin, Panasonic, Mitsubishi, Hitachi, Nidec, LG, and Met Tube. They have committed to invest Rs2,090crore.