PLI Scheme Boost: AC Component Manufacturers Get Rs 863 Crore Investment

Five companies, including Kirloskar Pneumatic, have been selected to benefit from a Rs 863 crore investment under the PLI scheme for AC components. The scheme offers a 6-4% incentive on incremental sales over five years. It aims to enhance domestic production and employment in the AC and LED industries.

In a significant development under the Production-Linked Incentive (PLI) scheme, five companies have been earmarked as beneficiaries, securing a monumental Rs 863 crore investment for the manufacturing of air conditioner components, an official report announced on Friday.

The PLI scheme promises a tiered incentive, ranging from 6% to 4%, based on incremental sales over a five-year span, with an additional gestation year included. This initiative is aimed at bolstering domestic production capacities and the workforce in the AC and LED sectors.

Notable beneficiaries, including Kirloskar Pneumatic, Indo Asia Copper, and Godrej & Boyce Manufacturing, are set to propel production value to Rs 8,337.24 crore and create over 1,799 direct jobs by 2027-28. The scheme is designed to enhance domestic value addition from 20-25% to 75-80%, strengthening India's role in global supply chains.

(With inputs from agencies.)