PLI window reopens for ACs, LEDs

The government has reopened the application window for the Production-Linked Incentive (PLI) scheme for white goods, specifically air conditioners (ACs) and LED lights, for a period of 30 days, an official statement said on Sunday. The window will remain open from September 15 to October 14.

“The application window for the PLI scheme for White Goods is being reopened based on the appetite of the industry to invest more under the scheme,” the Commerce and Industry Ministry said. The ministry clarified that no applications will be accepted after the closure of the window.

Both new applicants and existing beneficiaries who propose to increase their investment either by switching to a higher target segment or through group companies applying under a different target segment will be eligible to apply, subject to certain conditions. Incentives will be provided only for the remainder of the scheme’s tenure.

Applicants approved in the proposed fourth round will be eligible for PLI for a maximum of two years in cases of new applicants and beneficiaries opting for GP-2 (gestation period) who seek to move to a higher investment category.

So far, 83 applicants with committed investments of Rs 10,406 crore have been selected as beneficiaries under the scheme. These investments are expected to support the manufacturing of components for ACs and LED lights across the complete value chain, including components not currently produced in sufficient quantities within India.

The Union Cabinet had approved the PLI scheme on April 7, 2021. The scheme is set to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29, with a total outlay of Rs 6,238 crore.

The scheme aims to enhance domestic manufacturing capacity in the white goods sector, promote investment, and reduce dependence on imports of key components.