PLI scheme for AC and LED lights

 42 companies have been selected for manufacturing of AC and LED components under PLI scheme.

White goods

Before giving information about the subject, let us know what is PLI scheme?

What is PLI Scheme?

In order to boost domestic manufacturing and cut down on import bills, the central government launched a PLI (Production Linked Incentive) scheme in March 2020, which aims to incentivize companies on increasing sales of products manufactured in domestic units. 13 regions have been selected for the PLI scheme in the country. Under which the government will give incentives of 1.97 lakh crore to the manufacturing companies in the country under different heads. Apart from inviting foreign companies to India, the scheme also aims to encourage local companies to set up or expand existing manufacturing units.

A provision of about Rs 2 lakh crore has been made in the budget for the schemes related to the PLI scheme. An average of 5 percent of the production is given as an incentive. This means that through the PLI scheme alone, in the coming 5 years, about $ 520 billion i.e. Rs 3,85,55,40,00,00,000 is estimated to be produced in India. Apart from this, the amount of work force currently working in those sectors for which the PLI scheme has been made, will almost double.

Employment opportunities will increase

The PLI scheme is going to have a huge impact in employment generation. Not only will the industry benefit in production and export, the demand that will increase due to increase in income in the country will also benefit, that is, double the profit. At the same time, this scheme is going to have a massive impact on the MSME sector of the country. In fact, the subsidiaries that will be formed in each sector will need a new supplier base across the entire value chain. Most of these subsidiary units will be made in the MSME sector only. The work of preparing MSMEs for similar opportunities has already been started.

Select these sectors

The scheme has also been approved for sectors such as automobiles, pharmaceuticals, laptops, mobile phones and telecommunications equipment, white goods industry, chemical cells, textiles, food products and IT hardware including the solar photovoltaic sector.

In which sectors how much will be invested?

• Manufacture of Medical Devices and Pharmaceuticals Department Rs 3420 crore
• Rs 40951 crore for mobile manufacturing and electronic components
• Rs 57,000 crore to automobiles and auto components under PLI scheme
• 15 thousand crore rupees for pharma and drug sector
• Rs 12,000 crore for telecom network and infrastructure
• 10683 crore for textile
• Rs 10900 crore for the food products sector
• Rs 4500 crore for solar photovoltaic sector
• Rs 6238 crore in white goods (AC and LED)
• Specialty Steel Ministry of Steel Rs 6322 crore
• Advance Chemistry Cell (ACC) Battery Rs 18100 crore
• Electronic/Technology Products Rs 5000 crore
• 6940 crores in the pharmaceutical sector.

Let's come to our topic.Out of which 42 companies have been selected for PLI, 26 companies A.C and 16 companies have been selected for manufacturing LED components.At present, India is mainly dependent on imports for AC and LED components.Components used in AC, copper tuwing and compressor are manufactured in India is negligible.Components used in AC, copper tuwing and compressor are manufactured in India is negligible.

     

 Similarly, India is almost completely dependent on imports for components such as LED chips, packaging, drivers and engines.The companies selected to make AC components mainly include Daikin India, Havells India, Blue Star, Voltas, Panasonic, East India.Dixon, Sisca, Orient, Haier are among the major companies involved in manufacturing the same LED components.

With the commencement of components manufacturing, a holistic environment for AC and LED manufacturing will be created in the country.

           According to the Ministry of Commerce and Industry, 26 companies making AC components will invest Rs 3898 crore and 16 companies manufacturing LED components will invest Rs 716 crore in 5 years.The investment of these companies is estimated to generate more than ₹ 81254 in 5 years.44000 people will get direct employment from this investment.Under the PLI scheme, these companies will be given an incentive of ₹ 6238 crore in 5 years.This incentive will be given to them every year for increasing their production by a certain limit.Selected companies may be given time till March 2023 to start production under the PLI scheme.