The Tata Group company plans to invest in a joint venture with an international partner that requires PN3 approval (Press Note 3), said its managing director and CEO Pradeep Bakshi.
Bakshi did not share details about its international partner, but said it is one of the largest compressor manufacturers in the world.
âWe have already applied for PN3 approval for this and are waiting for it. As soon as this is done, we will set up the plant, âBakshi told PTI on the edge of a round table for investors on production-related incentives (PLI) regulations for white goods.
When asked about the investment, he said, “We plan to invest at least Rs.350 billion in compressor manufacture and another Rs.150 billion to Rs. 200 billion in air conditioning.”
“We have pledged an additional investment of around Rs 450-500 million to the government based on PN3 approval,” he added.
The company has yet to decide on a location to manufacture its compressors as it is still waiting for the PN3 application to be completed. “Once PN3 is approved, we will decide on other things,” added Bakshi.
In that news release, the government had made its prior authorization for foreign investment from countries sharing a land border with India mandatory in order to curb opportunistic takeovers of domestic companies in the wake of the COVID-19 pandemic.
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. According to this decision, FDI proposals from these countries require government approval to invest in India in any sector.
The government has already approved Voltas’ proposals to manufacture Tangential Fans (CFF), heat exchangers and molded plastic parts under the PLI program.
Earlier this month the government announced the selection of 26 proposals with a pledged investment of Rs.3,898 billion for the air conditioning sector.
As part of the PLI, the government has approved a proposal from Daikin Industries, the world’s leading air conditioning company for the manufacture of compressors, heat exchangers, sheet metal and molded plastic parts, worth Rs. 538.70 billion.