Government reopens application window for Production Linked Incentive scheme on white goods

In a significant move aimed at bolstering domestic manufacturing, the Union Cabinet has reopened the application window for the Production Linked Incentive (PLI) Scheme for White Goods.

This scheme, specifically targeting the manufacture of components and sub-assemblies of Air Conditioners (ACs) and LED Lights, aligns with Prime Minister Narendra Modi's vision of 'Atmanirbhar Bharat' (Self-Reliant India).

The scheme, initially approved on April 7, 2021, will be implemented over a seven-year period from FY 2021-22 to FY 2028-29, with an allocated budget of Rs. 6,238 crore.

The decision to reopen the application window reflects the industry's growing confidence and appetite for investment in this sector.

This renewed interest is attributed to the successful domestic manufacturing of key components under the PLIWG Scheme. 

Both new applicants and existing beneficiaries are encouraged to apply, provided they meet the eligibility conditions outlined in Para 5.6 of the Scheme Guidelines and adhere to the investment schedule specified in Appendix-1 or Appendix-1A of the guidelines.

Notably, existing beneficiaries can switch to a higher target segment or have their group companies apply under different segments.

Applicants approved in this third round will be eligible for incentives for the remaining tenure of the scheme. New applicants and existing beneficiaries opting for an investment period up to March 2023 will be eligible for PLI for a maximum of three years.

Those opting for an investment period up to March 2022 will be eligible for PLI for a maximum of two years. However, flexibility will be provided to existing beneficiaries to submit claims as per their original investment plan if they fail to meet the threshold investment or sales in a given year. This flexibility will only be available once during the scheme period.

In a bid to enhance liquidity, better manage working capital, and improve operational efficiency, the government has introduced quarterly claims processing of PLI, replacing the previous annual claims processing system. The necessary amendments have been made to the Scheme Guidelines to reflect this change.

The PLI Scheme for White Goods aims to bring manufacturing to the forefront, driving India’s growth and creating job opportunities. The government’s proactive steps in reopening the application window and introducing quarterly claims processing underscore its commitment to fostering a robust manufacturing ecosystem in the country.