Production Linked Incentive Scheme for White Goods (PLI-WG)

Production Linked Incentive (PLI) Scheme on White Goods (ACs and LED) was held to take the feedback on the scheme, the Application window for which will be open for 3 months from 15 June 2021

PLI Scheme for White Goods was notified on 16th April’21. Scheme Guidelines were issued on 4th June, 2021 for Production Linked Incentive Scheme for White Goods manufacturers in India. The Outlay for the scheme is Rs 6,238 Cr for 2021-22 to 2028-29.

Target Segment and Eligilble Products

A. For Air Conditioners: Room Air Conditioners (i.e. Split AC and Window AC) and Commerical Air conditioners (i.e Ducted Air Conditioning System and Variable Refrigeran Flow (VRF) Air Conditioning System.

i. High Value Intermediaries of ACs: Compressors including oil free and high capacity, Copper Tube (plain and/or grooved) and Alumium Stock for Foils or Fins for heat exchangers

ii. Low Value Intermediaries of ACs: Controls Assemblies for IDU or ODU or Remotes, Display Panels(LCD/LED), Motors, Cross Flow Fan (CFF), Valves & Brass compenents, Heat Exchanges, Sheet Metal Components, Plastic Moulding Componentss

iii. Both

B. For LED Lights: LED lamps, LED Downlight, Tubular LED and battens, and LED Street light and other LED luminaires

i. LED (Core Components): LED Chip Packaging, Integrated Circuits (ICs), Resistors, Fuses and Larges - Scale investments in LED components

ii. LED (Components): LED Chips, LED Drives, LED Engines, LED Modules, Printed CIrcut Boards (PCB), Mechanicals - Housing, Wire Wound Inductors, Drum Cores, Heat Sinks, DIffusers, Ferrite Cores and LED light Management Systems (LMS)

Quantum of Incentive

It extends an incentive of 4% to 6% on incremental sales of eligible products for 5 years. Amount of Inventive shall be capped differently on Air conditioners and LED Light.

Companies meeting the pre-qualification criteria for different target segments will be eligible to participate in the Scheme. Incentives shall be open to companies making brown field or green field Investments. Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met for claiming incentives.

An entity availing benefits under any other PLI Scheme of Govt. India may take benefits under other applicable schemes of Govt. of India or schemes of State governments.

A number of global and domestic companies, including a number of MSMEs are likely to benefit from the Scheme. The Scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for AC and LED industries, develop complete component eco-systems in India and create global champions manufacturing in India.