PLI White Goods

The application window for the PLI Scheme for White Goods (ACs and LED Lights) is being reopened in response to increased industry interest, driven by the expanding market and the confidence fostered by the production of key components in India under the PLIWG Scheme. This reopening will adhere to the original terms and conditions outlined in the PLIWG Scheme notification dated 16 April 2021 and the Guidelines issued on 04 June 2021, with periodic amendments. The application window will be accessible from 15 July 2024 to 12 October 2024.

To ensure fairness, both new applicants and existing beneficiaries who wish to increase their investment by switching to a higher target segment, or their group companies applying under different target segments, can apply if they meet the eligibility criteria.

As per the Scheme Guidelines, applicants will be eligible for incentives only for the remaining tenure of the Scheme. New applicants and existing beneficiaries opting for an investment period up to March 2023 and seeking to move to a higher investment category will be eligible for PLI for a maximum of three years. Existing beneficiaries opting for an investment period up to March 2022 will be eligible for a maximum of two years. If they fail to meet the investment or sales thresholds in a given year, they can still submit claims based on their original investment plan, although this flexibility is available only once during the Scheme period.

To enhance liquidity, working capital management, and operational efficiency, a quarterly claims processing system for PLI will replace the annual claims processing. Necessary amendments have been made to the Scheme Guidelines to reflect this change.

To date, 66 applicants with a committed investment of Rs 6,962 crore have been selected under the PLI scheme. Companies investing in manufacturing AC components include Daikin, Voltas, Hindalco, Amber, PG Technoplast, Epack, Mettube, LG, Blue Star, Johnson Hitachi, Panasonic, Haier, Midea, Havells, IFB, Nidec, Lucas, Swaminathan, and Triton Valves. For Led Light components, investors include Dixon, R K Lighting, Radhika Opto, Surya, Orient, Signify, Crompton Greaves, Stove Kraft, Cosmo Films, Halonix, Chenfeng, Fulham, Adsun, Inventronix, and Luker. These investments will facilitate the production of a complete range of components for ACs and LED Lights, including those not currently manufactured in India.

The Union Cabinet approved the PLI Scheme for White Goods on 7 April 2021 to support the manufacture of components and sub-assemblies of ACs and LED Lights. The Scheme will be implemented over seven years, from FY22 to FY29, with a budget of Rs. 6,238 crore.

Cover Photo: www.pexels.com


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