led: Over 50 companies list Rs 6,000 crore AC, LED investment – Times of India

NEW DELHI: Over 50 companies have applied for availing production-linked incentives (PLIs) for air conditioners and LEDs, proposing an investment of around Rs 6,000 crore in the manufacturing of components for ACs and LED lights.
Most of the investments are expected to happen in two-three years and, after that, local production of components for ACs and LED lights is set to start, Ficci Electronics Manufacturing Committee chairperson Manish Sharma said. This will not only help in saving foreign currency, as the majority of the components in ACs and LED lights are imported from countries like China and Taiwan, but also create fresh job opportunities.
The PLI scheme has been designed to create a healthy component ecosystem for ACs and LEDs within the country and make India an integral part of the global supply chain.
According to the government, the scheme will extend an incentive of 4-6% on incremental sales for five years, subsequent to the base year and one year of gestation period.

“It is encouraging to see the industry response to the PLI scheme for component manufacturing in AC and LED. From the applications received, it seems that the industry stands to get an investment of nearly Rs 6,000 crore of which about Rs 5,000 crore is towards AC and Rs 1,000 crore towards LED,” Sharma, who is president and CEO of Panasonic India & South Asia, said.
Sharma was involved in the process as part of his role in the industry body Ficci.
The government said the PLI scheme will lead to an increase in value-addition within India from 20% to 80-85%, while developing a robust component ecosystem.
The selection of companies that would be given the PLI benefits will be done so as to incentivise manufacturing of components or sub-assemblies which are currently not manufactured in the country. Mere assembly of finished goods will not be incentivised, the government said.