New Delhi:
The government has announced the reopening of the application process for the Production-Linked Incentive (PLI) scheme targeting household electronic products, specifically air conditioners (ACs) and LED lights.
The application window will be open for 90 days,
starting from July 15 and closing on October 12.
Benefits of the PLI Scheme
Inclusive Eligibility
Both new applicants and existing beneficiaries of the scheme are eligible to apply. This inclusion aims to avoid any discrimination and encourage increased investment.
Investment Boost
The white goods industry has expressed a desire to invest more under the PLI scheme. As a response, the government has made provisions for existing beneficiaries to increase their investment alongside new applicants.
Selected Beneficiaries
So far, 66 companies have been selected as beneficiaries, with a total investment of ₹6,962 crore. These companies are entitled to receive incentives for the remaining period of the scheme.
Application and Investment Period
Eligibility Period
Applicants approved in the proposed third round will be eligible under the PLI scheme for a maximum of three years.
New Applicants and Existing Beneficiaries (Investment up to March 2023)
Eligible for incentives for up to three years.
Existing Beneficiaries (Investment up to March 2022)
Eligible for incentives for a maximum of two years if they move to higher investment categories in the proposed third round.
Enhancements in the Scheme
Quarterly Claim Process
To maintain business liquidity, improve working capital management, and reduce operating costs for beneficiaries, the government has decided to implement a quarterly claim process for the PLI.
Scheme Background
The PLI scheme for white goods, aimed at boosting the production and assembly of components for air conditioners and LED lights, was approved by the Union Cabinet on April 7, 2021.
The scheme is set to be implemented over seven years, from 2021-22 to 2028-29, with a total expenditure of ₹6,238 crore.
