Bhagwati Products Ltd, a company that operates in the space of electronic products manufacturing, on Friday said it has applied for the Production Linked Incentive (PLI) scheme, announced by the government for AC components.
The company is already operating under the PLI scheme for smartphones and IT hardware in contract manufacturing arrangement with domestic and international brands and has already invested over Rs 100 crore in expanding the manufacturing facility.
However, the contract manufacturer has not shared the amount which it intends to invest for the manufacturing of components under the PLI scheme.
Bhagwati Products Director Rajesh Agarwal said, "To ramp up our efforts and investment, we have also applied for the PLI scheme for air conditioner component and LED lights that will enable us to further up our production capacity and evaluate ways to locally source components in India."
Bhagwati Products' goal would be to maximise component sourcing locally, which will help in the creation of employment opportunities at the local level and boost manufacturing in the country, he added.
With its two manufacturing facilities at Bhiwadi (Rajasthan) and Hyderabad (Telangana), Bhagwati Products' current capacity is to roll out almost two million smartphones a month and one million LED TVs per month.
Earlier on September 16, the government had said as many as 31 companies including Voltas, Daikin, Panasonic, Hitachi, Blue Star and Havells have applied for availing PLIs for manufacturing of components, proposing an investment of around Rs 4,995 crore.
The selection of applicants will be done within 60 days from the date of closure of the application window or by November 15, the Department for Promotion of Industry and Internal Trade (DPIIT) had said.
The Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) is expected to increase domestic value addition in the manufacturing process from 25 per cent to 75 per cent by 2026.
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