Govt Reopens PLI Scheme for White Goods for 3 Months

• Govt reopens applications for white goods (ACs & LEDs) for 3 months
• ₹6,238 cr outlay; 83 firms committed ₹10,406 cr; value addition to rise from 20% to 80%
• ₹1.90 lakh cr investments, ₹17 lakh cr output, 12.3 lakh jobs, ₹7.5 lakh cr exports across 14 sectors

The government will open the application window for the Production-Linked Incentive (PLI) scheme for white goods again from Monday for a period of three months, the Commerce and Industry Ministry announced recently.

The resumption of the window for air conditioners (ACs) and LED lights came after the government reportedly received many requests from the industry for more facilities under the PLI scheme.

The PLI scheme for white goods, which was approved by the Union Cabinet back in April 2021, is being implemented over seven years (2021-22 to 2028-29), with an outlay of ₹6,238 crore. So far, 83 applicants comprising committed investments of ₹10,406 crore have been selected as beneficiaries under the scheme.

 The aim is to raise domestic value addition from 20% to around 80%, as well as to enable local manufacturing of AC and LED components across the value chain, including items that are currently not being produced in India.

"The application window for the scheme shall remain open for the period from September 15 to October 14 (both dates inclusive)", mentioned in the statement.

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The PLI scheme for white goods (PLIWG)—notified in April 2021—grants 4 to 6% financial incentives on net incremental sales over a period of five years.

The statement added, "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 a higher target segment or their group companies applying under a different target segment would be eligible to apply".

 The scheme aims to plug gaps faced by the sector and address challenges of scale, potential exports, robust components ecosystem, and job creation.

The ministry has stated that conditions of the scheme remain unchanged, however, successful applicants in this round can access an incentive grant for the remaining duration whilst new applicants may access incentives for a maximum of 2 years.

The PLI scheme has a ₹1.97 lakh crore allotment across 14 sectors and has already raised ₹1.90 lakh crore in investments, generating over ₹17 lakh crore in production, creating 12.3 lakh jobs, and pushing exports over ₹7.5 lakh crore.