New Delhi [India], January 20 (ANI): The Production-Linked Incentive (PLI) Scheme for White Goods has received a significant boost with a total of 24 beneficiaries committing investments of Rs3,516 crore during its third round of applications, as announced by the Ministry of Commerce and Industry.

According to the Ministry of Commerce and Industry, this initiative is poised to enhance the domestic manufacturing of components for air conditioners (ACs) and LED lights, solidifying India's position in the global supply chain.

In the third round of the scheme's online application process, the government received 38 applications. Following a comprehensive review, 18 new companies were provisionally selected, including 10 manufacturers of AC components and 8 LED light manufacturers, with a combined investment commitment of Rs2,299 crore.

Additionally, 6 existing beneficiaries have committed to upgrading to higher investment categories, bringing an additional investment of Rs1,217 crore.

Meanwhile, 13 applications, including two from existing participants, are being referred to the Committee of Experts (CoE) for further evaluation and recommendations. One applicant has opted out of the scheme.

Since its launch, the PLI Scheme for White Goods has attracted a total of 84 companies, committing investments of Rs10,478 crore, with an estimated production value of Rs1,72,663 crore.

The scheme's impact is expected to bolster India's manufacturing capabilities significantly and drive economic growth in the AC and LED sectors.

For air conditioners, the scheme aims to promote the production of critical components, such as compressors, copper tubes, heat exchangers, BLDC motors, and control assemblies.

Similarly, for LED lights, it will facilitate the domestic manufacturing of LED chip packaging, LED drivers, light management systems, LED engines, and metallized films for capacitors, among other components.

The Union Cabinet approved the PLI Scheme for White Goods in April 2021 with a budgetary outlay of Rs6,238 crore. Designed to be implemented over FY 2021-22 to FY 2028-29, the scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on April 16, 2021.

The initiative provides incentives ranging from 6 per cent to 4 per cent on incremental sales over a five-year period, following a base year and one year of gestation.

Aimed at creating a robust component ecosystem for the AC and LED industries, the scheme aspires to increase domestic value addition from the current 15-20 per cent to 75-80 per cent.

The PLI Scheme is integral to India's goal of becoming a global manufacturing hub. By incentivizing key industries, the government aims to create a self-reliant ecosystem for critical components, reduce dependency on imports, and position India as a key player in the global supply chain for white goods. (ANI)