The application window for the Production Linked Incentive (PLI) Scheme for White Goods (ACs and LED Lights) is set to reopen from July 15, 2024, to October 12, 2024. This move comes in response to increasing industry interest, fueled by the growth in the market and confidence in local manufacturing under the PLIWG Scheme.

Application Details and Eligibility

Both new applicants and existing beneficiaries seeking to invest more by switching to higher target segments or applying under different target segments can apply, provided they meet the eligibility conditions in Para 5.6 of the Scheme Guidelines and adhere to the investment schedule in Appendix-1 or Appendix-1A. The Consolidated Scheme Guidelines are available online for detailed reference.

Applicants approved in the third round will be eligible for incentives for up to 3 years for new applicants and up to 2 years for existing beneficiaries opting for a higher investment category. This extended window provides an opportunity for companies to expand their manufacturing capabilities and contribute to the local economy.

Investment Commitments and Notable Investors

So far, 66 applicants with committed investments of US$ 834.3 million (Rs. 6,962 crore) have been selected under the PLI scheme. Notable investors in AC components include:

Daikin

Voltas

Hindalco

Amber

LG

Blue Star

Johnson Hitachi

In contrast, investors in LED components include:

Dixon

Surya

Orient

Signify

Crompton Greaves

Halonix

These investments will significantly boost the manufacturing of AC and LED components across the value chain, including those not currently produced in India. This influx of investment is expected to enhance local manufacturing capabilities, reduce import dependence, and foster innovation within the industry.

Background and Objectives of the PLI Scheme

The Union Cabinet approved the PLI Scheme on April 7, 2021, as part of the 'Atmanirbhar Bharat' initiative to promote local manufacturing, drive growth, and create jobs. Running from FY22 to FY29, the Scheme has an outlay of US$ 747.5 million (Rs. 6,238 crore).

The primary objectives of the PLI Scheme are:

Promote Local Manufacturing: Encourage companies to set up manufacturing units in India, thereby reducing reliance on imports.

Drive Economic Growth: Stimulate economic growth by fostering a robust manufacturing sector.

Create Jobs: Generate employment opportunities across various skill levels.

Boost Innovation: Encourage innovation and the development of new technologies within the manufacturing sector.

Incentives and Benefits

The PLI Scheme offers a range of incentives to encourage investment and growth in the manufacturing sector. These incentives are designed to make local manufacturing more competitive and attractive to investors. Key benefits include:

Financial Incentives: Direct financial incentives based on incremental sales of products manufactured in India.

Support for R&D: Incentives for research and development activities to foster innovation.

Market Expansion: Opportunities to expand into new markets and increase export potential.

Conclusion

The reopening of the application window for the PLI Scheme for White Goods (ACs and LED Lights) presents a significant opportunity for both new and existing manufacturers to leverage the benefits of the Scheme. With a robust framework and substantial incentives, the PLI Scheme aims to transform India's manufacturing landscape, promoting self-reliance and economic growth. As the application window opens from July 15, 2024, to October 12, 2024, interested parties are encouraged to apply and contribute to the country's manufacturing resurgence.