The Indian government has reopened the application window for the Production Linked Incentive (PLI) Scheme for White Goods, specifically targeting air conditioners (ACs) and LED lights. This application period will run from July 15, 2024, to October 12, 2024, in response to increased industry interest.   The government’s decision to reopen applications reflects the growing enthusiasm among companies to invest in this scheme. Both new companies and those already part of the scheme can apply. Existing participants looking to invest more or shift to different product categories are also eligible. Applicants must meet specific conditions outlined in the Scheme Guidelines, available online.  Approved applicants will receive incentives for the remainder of the scheme's duration.

New applicants and those making additional investments will get incentives for up to three years. To facilitate better financial management for companies, the scheme will now process claims quarterly instead of annually. The guidelines have been updated to reflect this change.  To date, 66 companies have committed Rs 69.62 billion under this scheme. Companies such as Daikin, Voltas, LG, Blue Star, and Dixon have invested in manufacturing parts for ACs and LED lights. These investments will enable the production of components that were not previously manufactured in India.  The PLI Scheme for White Goods was approved on April 7, 2021, as part of Prime Minister Narendra Modi's ‘Atmanirbhar Bharat’ initiative. The scheme aims to boost domestic manufacturing, drive economic growth, and create jobs. It will run from FY 2021-22 to FY 2028-29, with a budget of Rs. 62.38 billion.    

(Source: Moneycontrol)