Piyush Goyal asks White Goods Industry to become global champions, says PLI scheme to give initial push in the direction
PLI in White Goods a win-win for
India, Industry and People: Goyal
Goyal expresses happiness over success of the scheme; 61 companies set up
components manufacturing plants at 111 Locations across 14 States/UT and
generating employment
Industry applauds PLI scheme, says robust components ecosystem will be in place
to put India in global value chain.
Government organizes Investor Roundtable on PLI in White Goods; CEOs of 61 PLI
beneficiaries give feedback on the journey ahead;
The Performance Linked Incentive (PLI) in White Goods is
a win-win for India, Industry and the people. Speaking at the high level
DPIIT-FICCI Investor Roundtable on PLI for White Goods in New Delhi, Piyush
Goyal, Minister for Commerce and Industry, Consumer Affairs, Public
Distribution and Textiles said that the PLI scheme is being used to only
encourage the industry to take the first few steps to compete in the global
market and give it the initial push to bring scale to your business. Citing the
example of how LED revolution was brought by removing the subsidy. “In the
long-run, no country has succeeded in becoming a prosperous nation on the back
of government support. In the LED programme in 2015, my first decision on file
was to remove the subsidy on the bulb given by EESL. Because the budget was
only 9 crores so everybody kept waiting for the subsidy and we could not go
beyond six-hundred thousand bulbs in a year. After removal of the subsidy, we
could encourage industry to start expanding the sale of the LED bulbs,” the
minister said. The scale-up of LED production brought down the prices of LEDs
significantly.
Goyal expressed happiness with demand from AC and LED
sector to open them for Free Trade Agreements and said that the industry should
now aim at becoming global champions. “You want to become global champions. You
want to compete with the rest of the world on an equal footing from a position
of strength. India is not a weak country. We are not looking for sops. We are
not scared of any competition. That’s the message this room should give out to
rest of the world”, Goyal said.
The minister said that the PLI initiative was part of
Prime Minister’s vision of converting crisis into an opportunity. He expressed
happiness at the success of PLI in White Goods saying that there were 61
companies had set up components manufacturing plants pan India at 111 Locations
across 14 States/UT and were generating employment. The minister said that the
White Goods Sector with focus on Airconditioning and LEDs was one of the first
sectors which was identified as the low-hanging fruit for encouraging the
domestic manufacturing. Goyal said that during the next 25 years of Amritkaal,
India would be a prosperous nation, driving the world growth.
Anurag Jain, Secretary, DPIIT, GOI said that looking at
the journey presented for PLI for White Goods, one thing which came out clearly
in this journey was the joint partnership and trust between the government and
the industry. Shri Jain also mentioned that DPIIT will facilitate in resolving
the issues with the local and Central government authorities so that there are
no undue delays in clearances and permissions for these projects.
Anil Agrawal,
Additional Secretary, DPIIT while appreciating the efforts of the FICCI
Electronics and White Goods Committee and sectoral Industry Associations like
RAMA, CEAMA, ELCOMA and ELCINA, said that the industry response to PLI for
white goods has been tremendous and we are confident that this will increase
the value addition in the industry from the current 25% to 75-80% by 2029. The
basic objective of this roundtable is to take feedback from the beneficiaries
and facilitate the journey ahead.
Sharing the
journey of PLI for White Goods, Agrawal said that 61 companies setting up
components manufacturing plants pan India at 111 Locations across 14 States/UT.
Significant capacities are coming up for components like Compressors, Control
Assembly for IDU/ODU, Aluminium stock and Copper Tubes for Air conditioners and
LED Drivers, Mechanical Housing and PCB including metal clad PCBs etc. Such
initiatives will create a robust component eco-system in the country. 15
projects have already been commissioned.
Arun Chawla, Director General, FICCI said that we all in
the industry are working together with a goal to strengthen the local value and
supply chain and to expand India's role in the global supply chain of white
goods sector.
Subhrakant
Panda, Senior Vice President, FICCI said that focusing on components has its
own set of advantages. This will bring the predictability in supply chain which
is an advantage that is needed in today’s uncertain times to stay and capture
the market.
Manish Sharma, Chair- Electronics and White Goods
Manufacturing Committee, FICCI and Chairman, Panasonic India & South Asia said
that their achievement is the outcome of continuous interaction of the
Government and the Industry which boosted the confidence of both the Government
and the investors.
Jasbir Singh,
Co Chair, Electronics Manufacturing Committee, FICCI and Chairman, Amber
Enterprises said that DPIIT rolled out this well thought of and uniquely
structured scheme in a very short span of time. Industry will meet the
expectations of the Government and a robust component eco-system will be in
place making India part of global value chain.
The Investors’ Round Table on PLI for White Goods was
jointly organized by DPIIT and FICCI in association with the industry
associations Consumer Electronics and Appliances Manufacturers Association
(CEAMA), Refrigeration and Air Cconditioning Manufacturers Association (RAMA), Electric
Lamp and Component Manufacturers Association of India (ELCOMA) and Electronic
Industries Association of India (ELCINA). CEOs of 61 PLI beneficiaries of white
goods participated in the meeting.
During
the Interactive Session, Eric Braganza, Consumer Electronics and Appliances
Manufacturers Association (CEAMA). President of Haier Appliances India, Mukundan
Menon, Vice President, Refrigeration and Air Conditioning Manufacturers
Association (RAMA) & President & COO, Cooling & Purification
Products Group, Blue Star, Nirupam Sahay, Past President, ELCOMA & President,
Lighting Solutions, Dixon Technologies & Managing Director, Rexxam Dixon
Electronics, Amrit Manwani, Past President, ELCINA & MD, Sahasra
Electronics also shared their presentations.
Hyunjin
Lee, MD, LG Electronics India, Kazuhiko Tamura, MD, Mitsubishi Electric India
and Sunil Vachani, Chairman Dixon Technologies India also shared their views.
The Union Cabinet had given approval to the Production Linked
Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights) to be
implemented between FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 Crore
on 7th April 2021. Altogether, 61 applicants are approved and are expected to
bring investments in component manufacturing eco system of ACs and LED Lights
industry to the tune of Rs 6,632 crore and generate approx. 46,368 direct
employment opportunities. The Scheme is expected to lead to total production of
components of ACs and LED Lights of about Rs 1,22,671 crore over five years.
The investments committed under the PLI are spread across
India, which will also promote a balanced economic development of the country.
These units are located across States like Gujarat, Andhra Pradesh, Goa,
Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra,
Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal and one Union
Territory Daman & Diu.