Business
Government Offers Fresh 30-Day PLI Window For AC And LED makers Amid Industry Demand; Push To Deepen India’s Value Chain, Cut Imports
Air Conditioners
Signalling renewed momentum in India’s push for domestic manufacturing, the Commerce and Industry Ministry has reopened applications under the Production-Linked Incentive (PLI) Scheme for white goods, specifically air conditioners and LED lights.
Cleared by the Union Cabinet in April 2021, the PLI scheme for ACs and LEDs has a budgetary outlay of Rs 6,238 crore over seven years (2021–29).
It forms part of Prime Minister Narendra Modi’s Atmanirbhar Bharat vision to reduce import dependence, boost domestic industry, and generate jobs
The fresh application window, running from 15 September to 14 October, comes after strong industry appetite for higher investments in local manufacturing, which is an outcome of the growing market and confidence generated due to manufacturing of key components of ACs and LED Lights in India under the PLIWG Scheme, the ministry said in a statement.
The scheme has been reopened under the same terms notified in April 2021.
In order to avoid any discrimination, both new applicants as well as existing beneficiaries of PLIWG who propose to invest more by way of switching over to higher target segment or their group companies applying under different target segment would be eligible to apply subject to fulfilling the eligibility conditions
Applicants approved in this fourth round will be eligible for incentives only for the remaining scheme tenure.
However, firms unable to meet higher thresholds will retain the option to claim under their original investment plans — though this flexibility is allowed only once.
So far, 83 companies have pledged Rs 10,406 crore under the PLI white goods scheme.
So far, 83 applicants with committed investment of Rs 10,406 crore have been selected as beneficiaries under the PLI scheme, according to the ministry.
The investments will lead to manufacturing of components of Air Conditioners and LED Lights across the complete value chain including components which are not manufactured in India presently with sufficient quantity.
