PLI scheme for white goods: Application window to be open for third time

The first round of application was invited in 2021, followed by the second round a year later as the entire allocated fund was not utilised

The Department for Promotion of Industry and Internal Trade (DPIIT) on Monday said that the government will reopen the application window for the production-linked incentive (PLI) scheme for white goods—ACs and LED lights—for 90 days, starting July 15, to give ‘one more chance’ to prospective investors to take benefits of the scheme.

“The application window is being reopened based on the appetite of the industry to invest more under the scheme, which is an outcome of the growing market and confidence generated due to the manufacturing of key components of ACs and LED lights in India under the PLI WG Scheme,” DPIIT said in a statement. The application window will remain open till October 12.

This is the third time that the industry department has reopened the application window. The first round of applications was invited in 2021, followed by the second round a year later as the entire allocated fund was not utilised.

The scheme, which was rolled out three years ago, is being implemented over a seven-year period, ending in the financial year 2028-29. The outlay of the scheme is Rs 6,238 crore.

The PLI Scheme for white goods has been designed to create a complete component ecosystem for ACs and LED lights industry in the country and make India an integral part of the global supply chains. The scheme is expected to result in the growth of domestic value addition from the current 15-20 per cent to 75-80 per cent.

So far, 66 applicants with a committed investment of Rs 6,962 crore have been selected as beneficiaries under the scheme.

In order to avoid any discrimination, both new applicants as well as existing beneficiaries of the scheme who propose to invest more by way of switching over to higher target segments would be eligible to apply.

“The applicant approved in the proposed third round would be eligible for PLI for a maximum of three years only in the case of new applicants and existing beneficiaries opting for an investment period up to March 2023 seeking to move to a higher investment category,” the statement said.

Existing beneficiaries who opted for the investment period up to March 2022 and seek to move to a higher investment category in the proposed third round will be eligible for PLI for a maximum of two years only.

“To maintain liquidity in the business, better working capital management, and enhance operational efficiency of beneficiaries, it has been decided to introduce the system of quarterly claims processing of PLI in place of processing of claims on an annual basis,” the statement said.