The Production Linked Incentive (PLI) Scheme for White Goods, covering Air Conditioners (ACs) and LED Lights, has undergone notable changes following feedback from beneficiaries and industry associations. These modifications aim to streamline the scheme’s operation and enhance the ease of conducting business. Here are the key alterations introduced in the PLI Scheme for White Goods:
- Methodology Change: The Cost-Plus method will replace the Comparable Uncontrolled Price (CUP) method for determining sales prices, especially for captive consumption or supplies to group companies. This alteration also entails a modification in the definition of ‘Arm’s Length.’
- Eligible Investments: Investments in Tool rooms for the production of Moulds & Dies and similar components are now considered eligible investments under Capital Investment.
- Extended Reporting Period: Beneficiaries have an additional year, beyond the initial two years, to report the establishment of additional manufacturing facilities.
- Revised Submission Dates: The deadline for submitting claims and refunds related to discrepancies between statutory compliance and provided records at the time of claim filing has been revised.
- Administrative Ministry Site Visits: Administrative Ministries will now conduct site visits as part of the scheme’s oversight.
- Bank Guarantee Rollover: Provisions for the rollover of Bank Guarantees have been introduced.
- Annexure Adjustments: Appropriate changes have been made to the Annexures within the Scheme Guidelines.
The PLI Scheme for White Goods, endorsed by the Prime Minister to bolster the “Atmanirbhar Bharat” (Self-reliant India) initiative, focuses on manufacturing components and sub-assemblies for ACs and LED Lights. It spans a seven-year period, from FY 2021-22 to FY 2028-29, with a budget of ₹6,238 crore. The Department for Promotion of Industry and Internal Trade (DPIIT) notified the scheme on April 16, 2021, and the scheme guidelines were issued on June 4, 2021. Further adjustments were made through corrigenda on August 16, 2021, and February 24, 2022.
As of now, the scheme is in operation, with 15 out of 64 selected beneficiaries, who opted for the gestation period until March 31, 2022, commencing commercial production. The remaining beneficiaries, with gestation periods up to March 31, 2023, are at various stages of implementation.
The PLI Scheme for White Goods aims to establish a comprehensive component ecosystem for the AC and LED Lights industry in India, integrating the country into global supply chains. It anticipates a significant increase in domestic value addition from the current 15-20 percent to 75-80 percent.
