15 Companies Selected for India's PLI Scheme for White Goods – India Briefing

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. 
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).
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)
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)
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 AC:
The target segments under LED include:
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:
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.
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.
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
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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