The Indian government has extended the application window for the Production Linked Incentive (PLI) scheme for white goods (including air conditioners and LED lights) until October 12. 

This scheme, approved by the Union Cabinet on April 7, 2021, aims to boost domestic manufacturing of these products, aligning with Atmanirbhar Bharat’s goals and job creation.

The application window for the production-linked incentive (PLI) scheme for white goods has been reopened for 90 days, from July 15 to October 12. 

This extension aims to give potential investors another opportunity to benefit from the scheme. Fifty-five applicants have been selected as beneficiaries under the scheme, with committed investments totalling Rs 6,962 crores.

Several well-known companies have invested in manufacturing components for air conditioners (ACs) and LEDs.

The scheme will run for five years, from FY2021–22 to FY 2025–26, with a total outlay of Rs 6,238 crores. It will offer a 4-6% incentive on incremental turnover over the base year on goods sold in India and those exported to global markets to eligible companies for five years.

To ensure fairness, both new applicants and existing beneficiaries of the PLI Scheme who wish to invest more by switching to a higher target segment or their group companies applying under different target segments would be eligible to apply.

While the applicants are eligible for incentives for the remainder of the scheme’s tenure, new applicants approved in the proposed third round would be eligible for PLI for a maximum of three years.

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

Existing beneficiaries who cannot meet the threshold investment in a given year will be eligible to submit the claims as per their original investment plan. However, this flexibility will be provided only once during the scheme period.

To improve working capital management and the operational efficiency of the beneficiaries, the government has decided to introduce a quarterly claims processing system for PLI instead of processing claims annually.