PLI Scheme Reopens for ACs and LEDs: What This Means for Manufacturing and Consumers

The Commerce and Industry Ministry on Sunday announced the reopening of the Production-Linked Incentive (PLI) scheme for air conditioners (ACs) and LED lights. 

The application window will run from September 15 to October 14, allowing both new applicants and existing beneficiaries seeking to scale up or move into higher investment categories.

Applications will not be accepted after the deadline, the ministry warned, adding that successful applicants will be eligible for incentives for the remaining duration of the scheme. New entrants opting for a longer gestation route to enter higher investment categories will receive support for a maximum of two years.

Strong Industry Response Expected
The move comes in response to strong industry interest in expanding investments under the scheme. Since its launch, 83 companies have committed a total investment of Rs 10,406 crore, with projects spanning the AC and LED value chains, including critical components not sufficiently manufactured in India.

Scheme Aligned with ‘Atmanirbhar Bharat’ Vision
The PLI scheme for white goods, covering the manufacture of components and sub-assemblies of ACs and LED lights, was approved by the Union Cabinet on April 7, 2021. It is part of Prime Minister Narendra Modi’s call for ‘Atmanirbhar Bharat’, aiming to place manufacturing at the center of India’s economic growth and employment creation.
Implemented over a seven-year period (FY 2021-22 to FY 2028-29), the scheme has a total outlay of Rs 6,238 crore, with incentives designed to attract large-scale investments and encourage technology-intensive manufacturing in India.

What This Means for Businesses
Companies applying in this round can benefit from financial incentives that lower investment risks and encourage domestic production of high-value components. The PLI scheme continues to play a pivotal role in strengthening India’s manufacturing ecosystem and reducing dependence on imports for key products in the white goods sector.

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