Backbone of digital economy, the global chip shortage is a clear warning for India
Synopsis
India has negligible manufacturing presence in the most vital cog of the digital world.
From your gaming console to your cars. From your mobile phones to your Wi-Fi, a tiny component powers much of our world today. Chips are at the heart of any electronic product and their ubiquitous nature makes it one of the most sought-after electronic items. But, thanks to an unusual fallout of the ongoing Covid-induced crisis, electronic manufacturers both within and outside of the country, are presently reeling under an unprecedented
Govt Notifies Rs 6,238 Crore PLI Scheme To Boost Domestic Manufacturing Of ACs, LED Lights
by IANS - Apr 17, 2021 11:42 AM
Air Conditioners
The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Production Linked Incentive (PLI) scheme for white goods air conditioners and LED lights, with a budgetary outlay of Rs 6,238 crore.
With this, the new scheme has become operational and all eligible manufacturers can now take the benefit of financial incentives provided under it to boost capacity.
The PLI scheme for White Goods (PLIWG) proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain. Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
Centre notifies PLI scheme for component makers of ACs and LED lights
April 17, 2021
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The Scheme shall extend an incentive of 4 per cent to 6 per cent on incremental sales over the base year of goods manufactured in India
The Central government has formally notified the ₹ 6,238 crore- Production Linked Incentive (PLI) Scheme for component makers in the air-conditioners and LED lights segments.
In the AC segment, incentives under the scheme will be provided to companies manufacturing various components which include compressors, copper tubes, aluminium foil, PCB assembly of controllers, BLCD motors, service valves and cross flow fans besides sub-assemblies.
In the LED lights segment, companies making components such as LED Chip Packaging, LED Chips, LED Drivers, LED Engines, packaging, modules, Resisters, ICs, Fuses, wire wound inductors among others, will be eligible to avail benefits under the scheme.
PLI scheme for ACs, LED lights to exclude ‘mere assembly’
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DPIIT’s norms prioritise production of basic components
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DPIIT’s norms prioritise production of basic components
The department for promotion of industry and internal trade (DPIIT) has notified the PLI scheme for ACs and LED lights and said that selection of companies to avail the incentives would be done to support manufacturing of components which are not made in India presently.
It said that mere assembly of finished goods would not be incentivised and companies investing in basic/core components would get a higher priority. Earlier this month, the government approved a production linked incentive (PLI) scheme for white goods Air Conditioners (ACs) and LED lights with an outlay of ₹6,238 crore. It will be implemented over 2021-22 to 2028-29.
Power sector revival requires structural changes: Brickwork ratings
April 16, 2021
Around 60 GW thermal power capacity under stress
The revival of the country’s power sector requires meaningful structural changes, targeting an improvement in the operational efficiency, a reduction in cross-subsidies and cost-reflective tariffs.
According to Vipula Sharma, Director, Brickworks Ratings, in their sectoral report, “The power sector has been one of the major contributors to banks’ increasing NPA issue, with nearly 60 GW of thermal capacity currently being under stress.”
Meeting peak demand
Given the lack of storage facilities for renewable energy in the country, it is still not in a position to meet peak demand. Although SECI has been experimenting with hybrid and round-the-clock projects, their track record in meeting peak demand is yet to be seen.