White Goods PLI Units coming up in 50 Locations
·
Component Sector comes up
·
ACs and LED in Focus
Speaking at the high level DPIIT-FICCI Investor
Roundtable on PLI for White Goods, Anurag Jain, Secretary, DPIIT, said that the
government is willing to look at the Phased Manufacturing (PMP) plan for the AC
industry to check the imports and increase local value addition and employment.
He was responding to the suggestions made by some of the CEOs present in the
roundtable to come out with the PMP for the AC industry.
Mr. Jain also mentioned that DPIIT will now ensure that
all these investments coming up under the PLI
of White Goods get approvals from the central and state government authorities
on fast track so that targets set under the PLI are achieved timely.
Mr. Jain also said that they were in the process of fast
tracking the National Single Window
Clearance System aimed at Ease of Doing Business where all applications can be
filed and tracked online. He also said that Government is fast racking FDI
applications under Press note 3.
Mr. Jain further said that the PLI scheme has been
designed such as to benefit those sectors where India can take lead and also to
benefit sunrise sectors and make them
ready for global competition.
Mr. Anil Agrawal,
Additional Secretary, DPIIT, while appreciating the efforts of the FICCI
Electronics and White Goods Committee, said that the industry response to PLI for white goods has been overwhelming.
The government took immense precautions while drafting the scheme so that there
are no impediments to the implementation of the scheme going forward, he said.
Sharing the journey of PLI for White Goods, Mr. Agrawal
said that in almost one year, DPIIT has ensured that the scheme was designed
and implemented based on the industry feedback and consensus across the value
chain.
In the DPIIT-FICCI Investor Roundtable over one hundred and fifty CEOs/CXOs of the
white goods industry participated showcasing the confidence of the investors in
PLI. Many of these investors in component value chain are new ventures from
the Small and medium sector who would now supply to the OEMs and integrate with
the Global value chains, noted Mr. Anil Agrawal.
He further elaborated that the impact of the scheme has
been tremendous as manufacturing units in over
50 locations across India are coming up or will benefit from the PLI scheme of
white goods in the component chain of AC and LED. Mr. Agrawal said that
these units are located in States like Gujarat, Andhra Pradesh, Goa, Himachal
Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra,
Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal (see table below).
|
State |
Number of Plants |
|
Andhra Pradesh |
5 |
|
Gujarat |
10 |
|
Goa |
1 |
|
Haryana |
4 |
|
Himachal Pradesh |
1 |
|
Karnataka |
2 |
|
Maharashtra |
5 |
|
Tamil Nadu |
4 |
|
Rajasthan |
4 |
|
Uttar Pradesh |
6 |
|
Telangana |
1 |
|
Uttarakhand |
6 |
|
West Bengal |
1 |
|
Total |
50 |
Mr. Manish Sharma, Chair- Electronics and White Goods
Manufacturing Committee, FICCI said our achievements as an industry with the
committed investment exceeding 4500 crores from more than 40 organizations
across Indian manufacturers, SMEs and
MNCs for varied components of ACs and LEDs including the industry of aluminium
and copper, is commendable.
He further said the collective wisdom of the Government
and the Industry coming together for a common cause has boosted the confidence
of both the Government and the investors. He appreciated the sectoral
associations for their contribution which was possible due to the guidance of
Ministry of the Commerce and Industry under the Atmanirbhar
vision of the Prime Minister. He further mentioned that the PLI brings with it
the commitment with a positive mindset ushering into the new era of backward
integration with scale allowing to build competitiveness for export.
Mr. Jasbir Singh, Co-Chair
Electronics Manufacturing Committee, FICCI said, “Applaud Government initiative
for PLI in our sector. This would have a compounding impact on component
landscape for our sector taking local value addition from current levels of 25%
to 75% in next 4-5 years. This was missing link in our industry, and we thank
DPIIT for rolling out this well thought of and uniquely structured scheme in
such a short span.”
Mr. Arun Chawla, Director
General, FICCI commended the government and the industry for the resilience and
actions shown in the past year.
The Investor roundtable, which witnessed participation
from all the applicants in the PLI of White Goods with over two dozen CEOs of
the industry, was organised jointly by DPIIT and
FICCI in collaboration with sectoral associations namely RAMA, CEAMA, ELCINA
and ELCOMA.
An Interactive Session on PLI investors was also attended
by President and office bearers of RAMA, CEAMA, ELCOMA and ELCINA, - the
sectoral associations.
About the PLI for
White Goods
In pursuance of Prime Minister’s clarion call for ‘Atmanirbhar Bharat’ to bring manufacturing at the centre stage and emphasize its significance in driving
India’s growth and creating jobs, the Government of India has given approval to
introduce the Production-Linked Incentive (PLI) Scheme for 13 key sectors with
total outlay of Rs. 1,97,291crore. Department for
Promotion of Industry & Internal Trade (DPIIT) is coordinating the
implementation of all PLI Schemes. DPIIT is also the nodal department for the
PLI Scheme for White Goods - Air Conditioners and LED lights sector - with an
outlay of Rs. 6,238 crores.
The proposal of DPIIT for the PLI Scheme for White Goods
for manufacture of components and sub-assemblies of ACs and LED Lights was
approved by the Union Cabinet chaired by the Prime Minister Mr. Narendra Modi
on 7.04.2021. The Scheme is to be implemented over a seven-year period, from
FY2021-22 to FY2028-29 and has an outlay of Rs. 6,238
crores. The Scheme was notified by DPIIT on 16.04. 2021. The Scheme Guidelines
were published on 04.06.2021. Some modifications to the Scheme Guidelines were
issued on 16.08.2021. Applicants were given flexibility to choose the gestation
period either up to March 2022 or up to March 2023.
Applications for the Scheme were invited from 15.06.2021
to 15.09.2021. Total 52 companies filed their application with committed
investment of Rs. 5,858 crores under the PLI scheme.
After evaluation of all the applications, 42 applicants
with committed investment of Rs 4,614 crore have been
provisionally selected as beneficiaries under the PLI scheme. The selected
applicants include26 for Air Conditioner manufacturing with committed
investments of Rs. 3,898 crore and 16 for LED Lights
manufacturing with committed investments of Rs. 716
crores.
Six applicants proposing FDI from countries sharing land
border with India have been advised to submit approval for FDI in terms of
Press Note 3 (2020) dated 17.4.20 for consideration of approval under the PLI
Scheme.
Four applicants were referred to the Committee of Experts
(CoE) for examination and its recommendations.