Sunday, July 14, 2024

Government Reopens White Goods PLI Scheme Application Window

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The Ministry of Commerce and Industry has announced the reopening of the application window for the production-linked incentive (PLI) scheme aimed at white goods, specifically air conditioners (ACs) and LED lights. This decision comes in response to increased interest from industry players looking to invest further under the scheme.

Details of the PLI Scheme Reopening

The Ministry stated that the decision to reopen the application window was driven by the growing market and the confidence instilled by local manufacturing of key AC and LED components. The terms and conditions remain consistent with those outlined in the original scheme notified on April 16, 2021, and subsequent guidelines issued on June 4, 2021.

Application Period and Eligibility

The application window will be open from July 15, 2024, to October 12, 2024. Both new applicants and existing beneficiaries of the PLI white goods scheme are eligible to apply. Existing beneficiaries can apply to switch to higher investment segments or have their group companies apply under different segments, provided they meet eligibility criteria and investment schedules.

Duration and Claims Processing

Approved applicants in this round can avail of PLI benefits for up to three years, depending on their investment plans. The scheme now introduces quarterly claims processing instead of annual, aiming to improve liquidity, working capital management, and operational efficiency for beneficiaries.

Current Beneficiaries and Investments

Currently, 66 applicants have been selected as beneficiaries, committing investments totaling Rs 6,962 crore. Notable companies like Daikin, Voltas, Hindalco, LG, and others are already manufacturing AC components, while companies such as Dixon, Crompton Greaves, and others are involved in LED lights components.

Govt ‘Atmanirbhar Bharat’ Initiative

The PLI Scheme for White Goods was approved by the Union Cabinet as part of Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat’ initiative, aiming to boost local manufacturing and create job opportunities. The scheme spans seven years, from FY 2021-22 to FY 2028-29, with a total outlay of Rs 6,238 crore.

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