Indian Government Reopens PLI Scheme For Acs And LED Lights To Boost Manufacturing In India

The application window for the PLI Scheme for White Goods (ACs and LED Lights) is being reopened based on the appetite of the industry to invest more under the Scheme, which is an outcome of the growing market and confidence generated due to the manufacturing of key components of ACs and LED Lights in India under the PLIWG Scheme. 

According to a Commerce and Industry Ministry release, the application window is being opened on the same terms & conditions stipulated in the PLIWG Scheme notified on 16.04.2021 and the PLIWG Scheme Guidelines issued on 04.06.2021, as amended from time to time. The application window for the Scheme shall remain open for the period from 15th September 2025 to 14th October 2025 (both dates inclusive) on the same online portal having URL as No application shall be accepted after the closure of the application window.

Eligibility for new and existing PLIWG applicants 

In order to avoid any discrimination, both new applicants as well as existing beneficiaries of PLIWG who propose to invest more by way of switching over to higher target segment or their group companies applying under different target segment would be eligible to apply subject to fulfilling the eligibility conditions as mentioned in the Para 5.6 of the Scheme Guidelines and adhering to investment schedule as mentioned in Appendix-1 or Appendix-1A of the Scheme Guidelines, as applicable. 

In terms of Para 6.4 of the PLIWG Scheme and Para 9.3 of the Scheme Guidelines, applicants shall only be eligible for incentives for the remainder of the Scheme's tenure. 

The applicant approved in the proposed fourth round would be eligible for PLI for a maximum of two years only in the case of new applicants and beneficiaries opting for GP-2 (i.e. upto March 2023) seeking to move to a higher investment category. 

For beneficiaries opting for GP-1 (i.e. upto March 2022) seeking to move to a higher investment category in the proposed fourth round, they would be eligible for PLI for one year only. Existing beneficiaries opting for the above, in case they are not able to achieve the threshold investment or sales in a given year, will be eligible for submitting the claims as per their original investment plan. 

PLI scheme progress, investment and implementation timeline

However, this flexibility will be provided only once during the Scheme period. So far, 83 applicants with committed investment of Rs 10,406 crore have been selected as beneficiaries under the PLI scheme. The investments will lead to the manufacturing of components of Air Conditioners and LED Lights across the complete value chain, including components that are not presently manufactured in India in sufficient quantity. 

The Union Cabinet had given approval for the PLI Scheme for White Goods for the manufacture of components and sub-assemblies of Air Conditioners (ACs) and LED Lights in 2021.

The Scheme is to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29, and has an outlay of Rs. 6,238 crore. 

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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