White Goods PLI Application Window

The commerce and industry ministry recently reopened the application window for the production-linked incentive (PLI) scheme for White Goods including ACs and LED lights starting March 10 to Aril 25,2022 for giving a second chance to prospective investors to take scheme benefits. On April 7,2021, the Union Cabinet approved the PLI manufacture of components and their sub-assemblies.

This scheme to be implemented from FY22 to FY29 has an outlay of ₹ 6,238 crore and offers incentives of 4 - 6% on an incremental sale of goods made in India until FY29.

White Goods and Sweeter Sop

About

  • The scheme was notified by the ministry on April 16,2021.
  • The online applications were invited from June 15-August 15,2021 wherein 42 applicants with committed investment of ₹ 4,614 crore were provisionally selected.
  • The selected applicants include:
    • 26 for AC manufacturing with committed investments of ₹ 3,898 crore
    • 16 for LED lights manufacturing with committed investment of ₹ 716 crore
  • Under Clause 9.2 of the Scheme Guidelines for investments additional applications under the scheme are also invited on the same terms and conditions as stipulated in the Scheme Guidelines issued on June 4,2021 as amended from time to time.
  • Once the application window closes, no application would be accepted.
  • The incentive shall be available only for the remaining tenure of the scheme.

White Goods

  • A term used for describing large household items such as washing machines, cookers, dryers, fridges, and freezers, ACs using electricity, gas, or some other kinds of fuel.
  • These products are made with enamel-coated materials that are white in colour.

Recent Update

  • As many as 19 companies including LG Electronics and Wipro have filed applications with proposed investments of ₹ 1,548 crore for availing benefits under the PLI scheme for white goods.
  • Among the 19 applicants, there are eight for AC components and 11 for LED lights.
  • Some other companies that have applied for manufacturing components of Air conditioners and LED lights are:
    • LG Electronics
    • Mitsubishi Electric
    • Adani Copper Tubes
    • Jindal Poly Films
    • Crompton Greaves
    • Zeco Aircon
    • Starion India
    • Swaminathan Enterprises
  • In the next five years, the 19 companies are expected to achieve production of about ₹ 26,880 crore of components of ACs and LED lights along with a direct employment generation of 5,522 persons.
  • The scheme is further expected to lead a total production of components of ACs and LEDs in India of about ₹ 1,07, 134 crore.

Examrace Team at Jul 30, 2022