Government reopens PLI scheme for ACs, LED lights; 30-day window for new and existing investors

Both new applicants and existing beneficiaries are eligible to apply. Existing participants can seek to move into higher target segments or apply through group companies in different segments, subject to eligibility and adherence to investment schedules.

However, applicants approved in this round will be eligible for PLI benefits only for the remainder of the scheme’s tenure, which runs until FY29. Depending on their investment category, new applicants may qualify for incentives for a maximum of two years, while some existing beneficiaries shifting categories may only be eligible for one year of support.

Industry response so far

Since its launch, the PLI scheme for White Goods has attracted 83 beneficiaries with committed investments worth Rs 10,406 crore. These investments span the manufacturing of AC and LED components across the value chain, including items not previously made in India in sufficient quantity.

The government expects the additional application window to help attract more investment and accelerate India’s goal of building a competitive local supply chain.

Atmanirbhar Bharat push

The scheme, cleared by the Union Cabinet in April 2021, was designed to boost manufacturing of sub-assemblies and components for ACs and LED lights, under the government’s Atmanirbhar Bharat vision. With an outlay of Rs 6,238 crore, it is being implemented over seven years from FY22 to FY29.

Officials stressed that while tariff reforms and GST changes have already provided momentum to consumer goods manufacturing, continued investment through the PLI scheme will create jobs and reduce import dependence.