Govt reopens application window for PLI scheme targeting ACs and LED lights to boost domestic manufacturing

The Indian government has reopened the application period for the Production Linked Incentive (PLI) Scheme for White Goods. This scheme focuses on air conditioners (ACs) and LED lights. Interested entities can apply between July 15, and October 12. The government decided to reopen applications because many companies are interested in investing more in this scheme.

Who can apply
Both new companies and those already part of the scheme can apply. Existing companies that want to invest more or switch to different product categories are also eligible. Applicants must meet specific conditions outlined in the Scheme Guidelines, which you can find online:

Approved applicants will receive incentives for the rest of the scheme's duration. New applicants and those investing more will get incentives for up to three years. The scheme will now process claims every quarter instead of once a year, helping companies manage their finances better. Changes have been made to the guidelines to reflect this.

Investments and manufacturing impact
So far, 66 companies have committed Rs 6,962 crore under this scheme. Companies like Daikin, Voltas, LG, Blue Star, and Dixon have invested in making parts for ACs and LED lights. These investments will help produce parts that were not previously made in India.

The PLI Scheme for White Goods was approved on April 7, 2021, as part of Prime Minister Narendra Modi's ‘Atmanirbhar Bharat’ initiative. The scheme aims to boost manufacturing in India, driving growth and creating jobs. It will run from FY 2021-22 to FY 2028-29, with a budget of Rs. 6,238 crore.