Government Reopens PLI For White Goods For AC, LED Manufacturers From July 15

Citing rising industry appetite for investment and a growing market, the government has reopened the Production-Linked Incentives for White Goods scheme for air conditioners and LED lights for a period of 90 days, starting July 15.

The Commerce and Industry Ministry said in a press release on Monday that it intends to retain the same terms and conditions notified in 2021, and will close the application window on Oct. 12 on its online portal.

The government has decided to introduce the system of quarterly claims processing of PLI, in place of processing of claims on an annual basis, which was previously reported for being implemented across PLI schemes.

Quarterly claims clearance would help beneficiary businesses better maintain working capital, liquidity and enhance operational efficiency.

So far, the government's PLI scheme has seen 66 applicants, with committed investment of Rs 6,962 crore.

These include investments from names like Daikin, Voltas, Hindalco, Amber, PG Technoplast, Epack, Mettube, LG, Blue Star, Johnson Hitachi, Panasonic, Haier, Midea, Havells, IFB, Nidec, Lucas, Swaminathan, and Triton valves who are manufacturers of components of ACs.

Meanwhile, Dixon, RK Lighting, Radhika Opto, Surya, Orient, Signify, Crompton Greaves, Stove Kraft, Cosmo Films, Halonix, Chenfeng, Fulham, Adsun, Inventronix, and Luker are among manufactuers of LED compoments, who are presently the beneficiaries of the scheme.

Both new applicants as well as existing beneficiaries (where investors either invest more by switching to higher target segment or have their group companies apply under a different target segment) would be eligible for the third round, subject to meeting the requirements, the release said.

However, applicants will be eligible for incentives for the remainder of the scheme’s tenure only. A new applicant approved in the third round and older investors opting for investment period up to March 2023 and wanting to move to higher investment category, would be eligible for incentives for a maximum of three years, according to the guidelines.

Existing beneficiaries opting for an investment period up to March 2022 and seeking to move to a higher investment category would be eligible for PLI for a maximum of two years only.

In the event that a company is unable to meet the revised threshold investment or sales in a given year, they would be allowed a one-time chance to submit claims as per the original investment plan.

The PLI Scheme for White Goods for manufacturers of components and sub-assemblies of ACs and LED Lights has been proposed over a seven-year period, from April 2022 to March 2029, with an outlay of Rs 6,238 crore.