DPIIT can explore PMP For the White Goods Industry – Anurag Jain

DPIIT will ensure that all investments made under the White Goods PLI receive expedited approval from central and state government bodies, allowing the PLI's aims to be met on time.

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Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), stated the government is willing to look at the Phased Manufacturing (PMP) strategy for the AC industry to check imports and enhance local value addition and employment, in response to proposals given by some of the CEOs in attendance at the roundtable high level DPIIT-FICCI Investor conference on Production-Link Incentive (PLI) for White Goods. 

He further added that the DPIIT will ensure that all investments made under the White Goods PLI receive expedited approval from central and state government bodies, allowing the PLI’s aims to be met on time.

Jain also stated that the National Single Window Clearance System for Ease of Doing Business, which allows all applications to be filed and tracked online, was in the process of being expedited. In addition, he stated that the government is expediting Foreign Direct Investments (FDI) applications.

While praising the efforts of the FICCI Electronics and White Goods Committee, Anil Agrawal, Additional Secretary, DPIIT, stated that the industry reaction to PLI for white goods has been phenomenal. He added the government took great care when formulating the scheme to ensure that there are no obstacles to its implementation in the future.

In discussing the PLI for White Goods journey, Agrawal stated that DPIIT ensured that the scheme was established and implemented based on industry feedback and consensus across the value chain in less than a year.

Over 150 CEOs/CXOs from the white goods industry attended the DPIIT-FICCI Investor Roundtable, demonstrating the investors’ confidence in PLI. Many of these component value chain investors are small and medium-sized businesses that will now supply OEMs and integrate with global value chains, according to Agrawal.

He went on to say that the initiative has had a huge impact because manufacturing units in over 50 locations throughout India are coming up or would benefit from the PLI scheme for white goods in the AC and LED component chain. Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana, Rajasthan, and West Bengal.

Our achievements as an industry, with committed investment exceeding 4500 crores from more than 40 organisations across Indian manufacturers, SMEs, and MNCs for various components of ACs and LEDs, including the aluminum and copper industries, are commendable, according to Manish Sharma, Chair-Electronics and White Goods Manufacturing Committee, FICCI.

According to Jasbir Singh, FICCI’s Co-Chair of the Electronics Manufacturing Committee, ,“Applaud Government initiative for PLI in our sector. This would have a compounding impact on component landscape for our sector taking local value addition from current levels of 25% to 75% in next 4-5 years. This was missing link in our industry, and we thank DPIIT for rolling out this well thought of and uniquely structured scheme in such a short span.”

FICCI Director General Arun Chawla praised the government and industry for their perseverance and actions over the past year.

About the PLI for White Goods

To recap, the Indian government has approved the introduction of the PLI Scheme for 13 critical industries, with a total investment of Rs. 1,97,291 crores. All PLI Schemes are coordinated by the Department for Promotion of Industry and Internal Trade (DPIIT). With a budget of Rs. 6,238 crores, DPIIT is also the nodal department for the PLI Scheme for White Goods – Air Conditioners and LED Lights.