India’s PLI Scheme 2.0 for White Goods (AC and LED): 15 Companies Selected

Posted by Written by Melissa Cyrill Reading Time: 11 minutes

The government announced 15 beneficiaries for the PLI 2.0 scheme for white goods on June 28. The selected companies include Adani Copper Tubes, LG Electronics, and Wipro Enterprises. Nine companies will focus on LED lights components, with a committed investment of  INR 4.6 billion, and six companies are manufacturing AC components, with a committed investment of INR 9.08 billion. 

The second round of PLI applications were opened between March 10 and April 25, 2022. 19 applicants submitted their proposals, including eight applicants for air conditioner (AC) components and 11 applicants for LED lights. The applicants include LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly films, Crompton Greaves, and Wipro. The first round of applications, held from June 15, 2021 to September 15, 2021, had elicited 42 beneficiaries with a committed investment of INR 46.14 billion.

The PLI Scheme for White Goods (AC and LED) seeks to incentivize local production capacity of air conditioners, LED lights, and related components, especially in segments that are export-dependent. 


Second Round of the PLI Scheme for White Goods (AC and LED)

A second round of applications for India’s PLI Scheme for White Goods (AC and LED) was announced by the commerce and industry ministry – from March 10 to April 25, 2022. (Additional applications were invited under Clause 9.2 of the Scheme Guidelines for investments.)

At the close of this round, 19 applicants had submitted proposals under the PLI scheme – 8 companies for AC components and 11 companies for LED lights. They include LG Electronics, Mitsubishi Electric, Adani Copper Tubes, Jindal Poly films, Crompton Greaves, Wipro, Zeco Aircon, Starion India, and Swaminathan Enterprises. Altogether, the 19 applicants have committed to production worth INR 268.8 billion and creation of 5522 jobs.

On Tuesday, June 28, the government released the list of 15 selected applicants (see here).

  1. For air conditioners, the selected companies will be manufacturing copper tubing, compressors, control assemblies for IDU or ODU, Heat Exchangers and BLDC motors among other components.
  2. Similarly, under LED Lights – LED Chip packaging, LED Drivers, LED Engines, LED Light Management Systems and Metallized films for capacitors etc. will be manufactured in India.
  3. Applicants referred to the Committee of Experts (CoE) are Zeco Aircon Limited, EMM ESS Aircon Private Limited, Speedoffer India Private Limited, and SIMOCO Telecommunications (South Asia) Limited.

Manufacturers of AC Components: List of Provisionally Selected Applicants in the Second Round of the PLI Scheme for White Goods

No.

Company

Products to be manufactured

Gestation period

Committed investment

 

1.

Adani Copper Tubes Limited

Copper tube (plain and/or grooved)

Up to March 2023

INR 4.08 billion

2.

LG Electronics India Private Limited

Compressors, control assemblies for IDU or ODU or remotes, motors, heat exchangers, plastic moulding components

Up to March 2023

INR 3 billion

3.

Starion India Pvt Ltd

Control assemblies for IDU or ODU or remotes, cross flow fan (CFF), sheet metal components, plastic moulding components

Up to March 2023

INR 501 million

4.

Kaynes Technology India Limited

Control assemblies for IDU or ODU or remotes, plastic moulding components, display panels (LCD/LED)

Up to March 2023

INR 500 million

5.

Mitsubishi Electric India Private Limited

Control assemblies for IDU or ODU or remotes, cross flow fan (CFF), heat exchangers

Up to March 2023

INR 500 million

6.

Swaminathan Enterprises Private Limited

Motors

Up to March 2023

INR 500 million

Total

INR 9.08 billion (INR 908.10 crore)

Manufacturers of LED Lights Components: List of Provisionally Selected Applicants in the Second Round of the PLI Scheme for White Goods

No.

Company

Products to be manufactured

Gestation period

 

Committed investment

 

1.

Jindal Poly Films Limited

Metalized film for capacitors

Up to March 2023

INR 3.60 billion

2.

Sahasra Semiconductors Private Limited

LED drivers

Up to March 2023

INR 200 million

3.

Konark Fixtures Limited

LED drivers, LED modules, mechanicals – housing, diffusers, LED light management systems (LMS), printed circuit boards (PCB), including metal clad PCBs

Up to March 2023

INR 165.5 million

4.

Wipro Enterprises Private Limited

LED drivers, LED light management systems (LMS)

Up to March 2023

INR 120 million

5.

Lumens Aircon Private Limited

LED drivers, LED modules, mechanical – housing, diffusers

Up to March 2023

INR 105 million

6.

SVN Opto Electronics Pvt Ltd

LED drivers, LED engines, LED modules, mechanicals – housing, diffusers

Up to March 2023

INR 103.3 million

7.

Crompton Greaves Consumer Electricals Limited

LED drivers, LED modules, mechanicals – housing, diffusers, LED light management systems (LMS), LED engines

Up to March 2023

INR 101.5 million

8.

Elin Electronics Limited

LED drivers, LED engines, LED modules, mechanicals- housing, diffusers

Up to March 2023

INR 100 million

9.

Esko Casting and Electronics Private Limited

LED drivers, LED engines, mechanicals – housing, LED light management systems (LMS)

Up to March 2023

INR 100 million

Total

INR 4.59 billion (INR 459.53 crore)

Background: PLI scheme 2.0 details

On April 7, the Indian government approved the PLI scheme for specific white goods. The scheme is to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29. Total incentives applicable under the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) will cost the government INR 62.38 billion (approx. US$831.27 million).

The Scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on April 16, 2021. The Scheme Guidelines were published on June 4, 2021. Applicants were given flexibility to choose the gestation period either up to March 2022 or up to March 2023.

Some modifications to the Scheme Guidelines were issued on August 16, 2021 and February 24, 2022:

Corrigendum issued August 16, 2021

S. No.

Existing clause

Revised / added clause

i.

Nil

New Clause 10.10:

“1. For any modifications in the application post selection by a selected applicant, request shall be made by the application to the PMA, who in turn would forward the request with its recommendation to DPIIT. DPIIT reserves the right to accept or reject the same. The decision of DPIIT in this matter would be final and shall be conveyed to the selected applicant through PMA. PMA may seek relevant additional details from the selected applicant, if necessary.”

Corrigendum issued February 24, 2022

S. No.

Existing clause

Revised / added clause

ii.

Clause 15

EXIT Clause:

15.1: If any selected applicant declines the offer of approval under the Scheme at any stage or exits the scheme without making full committed investment for reasons whatsoever, in such case,

(a) the bank guarantee furnished by the selected applicant shall be invoked as per the provisions of the clause 10.9 of the scheme guidelines and

(b) the applicant shall have to refund the incentive availed by it under the scheme till such date along with interest calculated at the prevailing 3 year SBI MCLR compounded annually.”

Clause 15

EXIT Clause:

15.1: If any selected applicant declines the offer of approval under the Scheme at any stage or exits the scheme without making total threshold investment for reasons whatsoever; in such case,

(a) the bank guarantee furnished by the selected applicant shall be invoked as per the provisions of the clause 10.9 of the scheme guidelines and

(b) the applicant shall have to refund the incentive availed by it under the scheme till such date along with interest calculated at the prevailing 3 year SBI MCLR compounded annually.”

Target segments under India’s PLI Scheme for White Goods

Target segments under AC:

  • Air conditioners (components – high value intermediates or low value intermediates or sub-assemblies or a combination thereof)
  • High value intermediates (copper tubes, aluminum foil, and compressors)
  • Low value intermediates (PCB assembly for controllers, BLDC motors, service valves, and cross flow fans for AC and other component

The target segments under LED include:

  • LED lighting products (core components like LED chip packaging, registers, ICs, fuses, and large-scale investments in other components)
  • Components of LED lighting products (like LED chips, LED drivers, LED engines, mechanicals, packaging, modules, wire wound inductors, and other components)

Incentives on offer

The PLI Scheme for White Goods will extend an incentive of four to six percent on incremental sales of air conditioners and LED lights to companies that manufacture these goods in India, for a period of five years subsequent to the base year and one year of gestation period. (See April notification here.)

On June 4, 2021, the Department for Promotion of Industry and Internal Trade (DPIIT) released guidelines including the stipulation that an applicant can opt for any one of the following initial investment periods:

  • April 1, 2021 to March 31, 2022
  • April 1, 2021 to March 31, 2023

Foreign investors should note that the application can be filed only by a company that is registered under the Companies Act, 2013 (that is, the applicant has to be a company incorporated in India) and wherever applicable, FDI requirements are also required to be complied with.

The PLI scheme separately earmarks different segments for types of components to attract targeted global investments and develop a component ecosystem within India.

Eligibility

To be eligible, companies must propose the manufacture of components or sub-assembly that is currently not done in sufficient capacity in India. In other words, the applicants must propose a significant investment into creating new manufacturing capabilities in the country. As such, companies engaged in the assembly of finished goods will not be eligible for incentives under this scheme.

Also, investment in land and building (including factory building or construction) required for the project or unit will not be considered for determining the applicant’s eligibility under the PLI Scheme.

Companies that meet the pre-qualification criteria for different target segments will be eligible to apply to the PLI Scheme.

Incentives will be open to companies making either brownfield and/or greenfield investments. Companies investing in basic/core components shall have a higher priority. Within a target segment, ‘large investment’ shall have a higher priority over ‘normal investment’. Investment in R&D should not exceed 15 percent of the total committed investment.

Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year must be met to claim incentives.

An entity that secures benefits under any other PLI Scheme for the same products cannot apply to this scheme. However, the entity participating in the PLI Scheme may take benefits under other applicable national schemes or state government schemes.

Companies in the AC and LED industries that apply for PLI benefits have to meet the compulsory BIS and BEE Quality standards for sales into domestic market and applicable standards for global markets. Any software used associated with R&D should have been procured or licensed through legally valid documents after payment of applicable taxes and duties.

Intended impact of PLI scheme for white goods

In 2021, while addressing the high level Investor Roundtable on PLI for White Goods organized by DPIIT and FICCI, Anurag Jain (Secretary, DPIIT), elaborated on the positive impact of the PLI scheme 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. These units are located in Indian states of Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal.

Manufacturing Units of White Goods in the Component Chain of AC and LED in India

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


Archived: First round of applications 

The first application window for the PLI Scheme for White Goods was open from June 15, 2021 to September 15, 2021. A total of 52 companies filed their applications and out of them, 42 applicants with committed investment of INR 46.14 billion were provisionally selected as beneficiaries. This includes 26 applicants for Air Conditioner manufacturing with committed investments of INR 38.98 billion and 16 applicants for LED Lights manufacturing with committed investments of INR 7.16 billion. Additionally, six applicants proposing FDI from countries sharing land border with India have been advised to submit approval for FDI.

Applicants Provisionally Selected Under the PLI Scheme for White Goods: Air Conditioners

Applicant

 

Products to be manufactured

 

Committed investment (INR millions)

 

Daikin Airconditioning India Private Limited

·         Compressor

·         Control assemblies for IDU or ODU or Remotes

·         Motors

·         Cross flow fan (CFF)

·         Heat exchangers

·         Sheet metal components

·         Plastic molding components

5387

Amber Enterprises India Limited

·         Control assemblies for IDU or ODU or Remotes

·         Motors

·         Cross flow fan (CFF)

·         Heat exchangers

·         Sheet metal components

·         Plastic molding components

4601.80

PG Technoplast Private Limited

·         Control Assemblies for IDU or ODU or Remotes

·         Cross Flow Fan (CFF)

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

3210

EPAC Durables Solutions Private Limited

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Cross Flow Fan (CFF)

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

·         Display Panels (LCD/LED)

3000

Hindalco Industries Limited

·         Copper Tube (plain and/or grooved)

·         Aluminum Stock for Foils or Fins for heat exchanger

5390

Mettube India Private Limited

 

·         Copper Tube (plain and/or grooved)

 

3002.10

 

IL JIN Electronics India Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Cross Flow Fan (CFF)

 

1673.30

 

Blue Star Climatech Limited

 

·         Heat Exchangers

·         Sheet Metal Components

 

1560

 

Havells India Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

 

1127.10

 

Johnsons Controls Hitachi Air Conditioning India Limited

 

·         Cross Flow Fan (CFF)

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

 

1006.70

 

Voltas Limited

·         Cross Flow Fan (CFF)

·         Heat exchangers

·         Plastic Molding components

1000

 

Napino Auto and Electronics Limited

 

·         Control Assemblies for IDU or ODU or Remotes

 

666

 

Bhagwati Products Limited

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Cross Flow Fan (CFF)

·         Valves & Brass components

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

610

Epavo Electricals Private Limited

 

·         Motors

 

580

 

IFB Industries Limited

·         Motors

·         Heat exchangers

·         Sheet Metal components

 

570

 

Lucas-Tvs Limited

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

 

540

 

Nidec India Private Limited

·         Motors

 

519.20

 

Dixon Devices Private Limited

·         Control Assemblies for IDU or ODU or Remotes

 

510

 

Syrma Technology Private Limited

·         Control Assemblies for IDU or ODU or Remotes

 

510

 

VVDN Technologies Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Sheet Metal components

·         Plastic Molding components

 

510

 

Virtuoso Optoelectronics Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Cross Flow Fan (CFF)

·         Valves & Brass Components 

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

 

505

 

East India Technologies Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Sheet Metal components

·         Plastic Molding components

 

500

 

Magnum Mi Steel Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Heat exchangers 

·         Sheet Metal components

 

500

 

Panasonic India Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

 

500

 

Sun Home Appliances Private Limited

 

·         Control Assemblies for IDU or ODU or Remotes

·         Motors

·         Cross Flow Fan (CFF)

·         Heat exchangers 

·         Sheet Metal components

·         Plastic Molding components

 

500

 

Tritonvalves Climatech Private Limited

 

·         Valves and brass components

 

500

 

Total

38978.20

Applicants Provisionally Selected Under the PLI Scheme for White Goods: LED Lights

Applicant

 

Products to be manufactured

 

Committed investment (INR millions)

 

Uniglobus Electricals & Electronics Private Limited

·         LED Chip Packaging

·         LED Drivers

·         LED Modules

·         Wire Wound Inductors

1250

Radhika Opto Electronics Private Limited

·         LED Drivers

·         LED Engines

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals- Housing

·         Wire Wound Inductors

·         Drum Cores

·         Heat Sinks

·         Diffusers

1065

Dixon Technologies Solutions Private Limited

 

·         LED Drivers

·         LED Engines

·         LED Modules

·         Mechanicals- Housing

·         Wire Wound Inductors

·         LED Light Management Systems

 

1000

Stovekraft Limited

·         LED Chips

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals Housing

·         Wire Wound Inductors

·         Diffusers

 

360

 

Cosmo Ferrities Limited

·         Ferrite Cores

·         LED Transformers

 

333

 

Epitome Components Private Limited

·         Laminate for Printed Circuit Boards (PCBs) and Metal Clad PCBs

 

310

 

Surya Roshni Limited

 

·         LED Drivers

·         LED Engines

·         LED Modules

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals – Housing

·         Drum Cores

·         Heat Sinks

·         Diffusers

·         LED Light Management Systems

·         LED Transformers

 

254.30

 

Syska Led Lights Private Limited

 

·         LED Drivers

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals – Housing

·         Wire Wound Inductors

·         Heat Sinks

·         Diffusers

·         LED Light Management Systems

 

1500

 

Cosmo Films Limited

·         Metallized film for capacitors

 

320.10

 

Sorin Tech Private Limited

 

·         LED Drivers

·         LED Engines

·         LED Modules

·         Mechanicals – Housing

·         Wire Wound Inductors

·         Drum Cores

·         Heat Sinks

·         Diffuser

·         LED Light Management Systems

·         LED Transformers

 

130.60

 

Skyquad Electronics And Appliances Private Limited

 

·         LED Drivers

·         LED Modules

·         Mechanicals – Housing

 

120

 

R K Lighting Private Limited

 

·         LED Drivers

·         ED Engines

·         Mechanicals – Housing Wire Wound Inductors

·         Heat Sinks

·         LED Transformers

 

116

 

Luker Electric Technologies Private Limited

 

·         LED Drivers

·         Mechanicals – Housing

·         Wire Wound Inductor

·         Drum Cores

·         Diffusers

 

101

 

Calcom Vision Limited

 

·         LED Drivers

·         LED Engines

 

100

 

Orient Electric Limited

·         LED Drivers

 

100

 

Signify Innovations India Limited

·         LED Drivers

·         Mechanicals – Housing

·         Diffusers

 

100

 

Total

7160

Applicants Advised to Obtain FDI Approval Under PLI Scheme for White Goods (AC and LEDs)

 

Applicant

 

Products to be manufactured

 

Committed investment (INR millions)

 

HI-VOLT ENTERPRISES PRIVATE LIMITED

 

·         Compressor

·         Motor

 

3540

 

MIDEA INDIA PRIVATE

LIMITED

 

·         Compressors

 

2500

 

HAIER APPLIANCES (INDIA) PRIVATE LIMITED

·         Control Assemblies for IDU or ODU or Remotes

·         Heat exchangers

·         Sheet Metal components

·         Plastic Molding components

1835.50

CHENFENG TECH PRIV A TE LIMITED

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals – Housing

·         Heat Sinks

·         Diffusers

1000

HALONIX TECHNOLOGIES PRIV A TE LIMITED

·         LED Modules

·         Printed Circuit Boards (PCB) including Metal Clad PCBs

·         Mechanicals – Housing

·         Heat Sinks

·         Diffuser

·         Fuses

130.50

FULHAM (INDIA) PRIVATE LIMITED

 

·         LED Drivers

·         LED Modules

 

110

 

This article was originally published March 11, 2022 and last updated on June 28, 2022.


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