Blue Star, Voltas plan to invest Rs 3,000 cr in centre’s PLI scheme
ECONOMY & POLICY

Blue Star, Voltas plan to invest Rs 3,000 cr in centre’s PLI scheme

Multiple industry executives said Voltas, Blue Star, Dixon, China's GMCC, Amber Enterprises, Panasonic, Lloyd, and Hindalco are planning to apply for the government's production-linked incentive (PLI) scheme for air-conditioner components, which will bring immediate investments of more than 3,000 crore.

Several companies that were considering investing in the manufacturing of air conditioners expecting finished goods to be allowed have shelved their plans because this scheme is only open for the production of components, unlike in mobile phones, where finished products are also covered.

As a result, several companies that were considering investing in the manufacturing of air conditioners expecting finished goods to be allowed have shelved their plans.

On September 15, the application window for the PLI scheme for air-conditioning components closes.

While an email seeking comment on the Aditya Birla Group's Hindalco unit went unanswered as of press time on Tuesday, executives at other companies confirmed their investment plans.

Amber Enterprises, a contract manufacturer, will propose a 400 crore investment, while Blue Star will invest 250 crore to build a heat exchanger and sheet metal plant.

Dixon is forming a Joint Venture (JV) with a Japanese company to produce air-conditioning printed circuit boards. GMCC, the world's largest compressor manufacturer and a subsidiary of China's Midea Group, is building a compressor plant near Pune for around Rs 700 crore.

After the government banned the import of ACs with refrigerant, 75 to 80% of the components are now imported, whereas more than 95% of ACs are now locally manufactured.

Several large manufacturers, including Samsung, LG, Godrej Appliances, and Daikin, are still debating whether or not to apply, and industry executives predict that some will decline because the PLI scheme focuses on components rather than finished goods. The industry pushed for the scheme to include finished goods as well, and it planned to invest in both.

Image Source


Also read: PLI scheme for solar PV to attract Rs 14k cr investment

Also read: Govt approves advanced chemistry cell PLI scheme

Multiple industry executives said Voltas, Blue Star, Dixon, China's GMCC, Amber Enterprises, Panasonic, Lloyd, and Hindalco are planning to apply for the government's production-linked incentive (PLI) scheme for air-conditioner components, which will bring immediate investments of more than 3,000 crore. Several companies that were considering investing in the manufacturing of air conditioners expecting finished goods to be allowed have shelved their plans because this scheme is only open for the production of components, unlike in mobile phones, where finished products are also covered. As a result, several companies that were considering investing in the manufacturing of air conditioners expecting finished goods to be allowed have shelved their plans. On September 15, the application window for the PLI scheme for air-conditioning components closes. While an email seeking comment on the Aditya Birla Group's Hindalco unit went unanswered as of press time on Tuesday, executives at other companies confirmed their investment plans. Amber Enterprises, a contract manufacturer, will propose a 400 crore investment, while Blue Star will invest 250 crore to build a heat exchanger and sheet metal plant. Dixon is forming a Joint Venture (JV) with a Japanese company to produce air-conditioning printed circuit boards. GMCC, the world's largest compressor manufacturer and a subsidiary of China's Midea Group, is building a compressor plant near Pune for around Rs 700 crore. After the government banned the import of ACs with refrigerant, 75 to 80% of the components are now imported, whereas more than 95% of ACs are now locally manufactured. Several large manufacturers, including Samsung, LG, Godrej Appliances, and Daikin, are still debating whether or not to apply, and industry executives predict that some will decline because the PLI scheme focuses on components rather than finished goods. The industry pushed for the scheme to include finished goods as well, and it planned to invest in both. Image Source Also read: PLI scheme for solar PV to attract Rs 14k cr investment Also read: Govt approves advanced chemistry cell PLI scheme

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