PLI for air-conditioners industry a game changer
Sole objective is to increase value addition to 75% from 25% by FY28, says Manish Sharma, Chairman, Panasonic
image for illustrative purpose
New Delhi: The Production Linked Incentive (PLI) Scheme for the air-conditioner industry is proving to be a ‘game changer’ as within a year and a half of its launch, the ratio of domestic value addition has gone up significantly to 45 per cent from 25 per cent, a top Panasonic Life Solutions India official has said.
The sole objective of the PLI scheme for air-conditioners was to increase the value addition to 75 per cent from 25 per cent by FY28 by encouraging the domestic production of components, Chairman of Panasonic Life Solutions India and South Asia Manish Sharma said. "A jump from 25 to 45 has happened just in about more than a year.
So, that is the change, which is happening, and that is why I feel that the PLI has been a game changer, specifically in the air conditioners industry," Sharma, who also heads the Electronics Manufacturing Committee of industry body Ficci, told. Investments in heat exchangers, compressors and other components, which are part of the PLI scheme for air-conditioners have started coming. All applicants have invested in physical structures. "This has happened in a record period of just about 18 months," he added. In November 2021, the government selected 42 companies under the PLI Scheme for white goods, of which 26 companies invested Rs 3,898 crore for air-conditioner components, and 16 firms invested Rs 716 crore for LED component manufacturing.
