PLI Scheme for ACs and LEDs attracts Rs 4,121 crore investment from 38 companies

Thirty-eight companies, including established players like Daikin, Voltas, and Blue Star, have submitted applications with proposed investments totalling ₹4,121 crore to benefit from the third round of the government’s production-linked incentive (PLI) scheme for white goods, according to an official statement.

This round of applications comes after the government reopened the ₹6,238-crore PLI scheme for air-conditioners (ACs) and LED lights in July, responding to significant industry interest.

Of the 38 applications, 20 are for AC components (with proposed investments of ₹3,679 crore), while 18 are for LED lights (₹442 crore). Nearly 43% of new applicants come from the MSME sector, reflecting the growing confidence among small and medium enterprises to integrate into the value chain for manufacturing components of ACs and LED lights.

Sanjiv Singh, Joint Secretary for the Department for Promotion of Industry and Internal Trade (DPIIT), said the scheme is boosting value addition in the sector, which has risen from 25% to around 50%, with expectations of reaching 80% in the coming years.

Over the next three years, these companies are projected to generate ₹55,877 crore through the production of AC components and LED lights, alongside creating 47,851 direct jobs. The investment footprint under the scheme has also expanded, covering 18 states and Union Territories, including Odisha and Jammu & Kashmir. The government disbursed ₹80 crore to beneficiary firms in 2022-2023.

The PLI Scheme for White Goods aims to establish a robust component ecosystem for air conditioners and LED lights in India, integrating the country into global supply chains. Approved by the Union Cabinet in April 2021, the scheme has selected 66 applicants so far, with a committed investment of ₹6,962 crore.

With PTI inputs.