MySubsidy

Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)

Ministry of Commerce and Industry · Central government

A scheme offering 4-6% incentive on incremental sales to manufacturers of AC and LED components to boost domestic production and reduce imports.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Not specified
Instrument
Subsidy
Deadline
Rolling
Disbursement
Released against milestones
Scheme duration
97 months

About this scheme

The Production Linked Incentive (PLI) Scheme for White Goods, covering Air Conditioners and LED Lights, is administered by the Ministry of Commerce and Industry, Government of India. It is designed to strengthen domestic manufacturing, cut import dependence, and build a resilient local supply chain for key components and sub-assemblies in these two product categories. Financial incentives are offered to encourage companies to establish or expand manufacturing operations in India.

The scheme targets firms making substantial investments in either brownfield or greenfield facilities. Eligible items include AC components such as compressors, copper tubes, heat exchangers, motors, and control assemblies, as well as LED parts like chips and packaging, drivers, and light-management systems. The objective is to raise domestic value addition from roughly 15-20% to a target of 75-80%, which is expected to boost self-reliance and generate employment.

The scheme runs from FY 2021-22 through FY 2028-29.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, One person company, Partnership firm
Udyam registration
Not specified
MSME registration
Not specified
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
Not restricted

- Companies undertaking brownfield or greenfield investments in manufacturing target segments in India. - Achievement of specified thresholds for net incremental sales of eligible products relative to a base year. - Compliance with cumulative incremental investment criteria as set out in the Scheme Guidelines. - No incentive disbursal for years where investment and sales criteria are unmet; eligibility for later years remains open if criteria are subsequently satisfied. - Investments covered under any other PLI scheme are excluded from eligibility consideration. - Net sales turnover of eligible products must meet predefined thresholds, including comparison against FY 2020-21. - Adherence to specified timelines for reaching threshold incremental sales, such as FY 2023-24 to FY 2027-28 for certain applicants.

How to apply

- **Step 01:** Go to the DPIIT’s official website and create an account on the PLI-WG Online Portal. Registration typically requires basic company details. - **Step 02:** Fill out the full online application form, making sure every required field is correct. Attach the supporting documents, which generally include financial statements, investment plans, production forecasts, and company registration papers. Pay the application fee as part of the submission. - **Step 03:** The competent authority will review your application. This includes checking the information against the scheme’s guidelines, evaluating the proposed investments, and verifying the projected incremental sales. Approval follows only if all the strict criteria are satisfied. - **Step 04:** Once approved, you must follow all compliance procedures and guidelines for the duration of the scheme to remain eligible for incentive payouts. This involves submitting regular reports on production, sales, and investments.

Apply on the issuer's site

How applications are assessed

The designated committee, which includes experts from the Ministry of Commerce and Industry and associated organisations, examines each application. Assessment centres on the proposed investment, expected incremental sales, and the applicant's ability to support domestic value addition in AC and LED component manufacturing. Meeting the financial and operational criteria specified in the scheme guidelines is essential.

Shortlisting can occur over several evaluation rounds, with final approval granted by the competent authority to the most suitable and compliant proposals. This procedure ensures that only manufacturers capable of advancing the scheme's goals receive incentives.

Frequently asked questions

Q: What is the primary objective of the PLI Scheme for White Goods?

The scheme seeks to increase domestic production of components and sub-assemblies for Air Conditioners and LED Lights, lessen reliance on imports, and foster a robust component ecosystem that integrates India into the global white goods supply chain.

Q: What kind of companies are eligible for this scheme?

Manufacturing companies making brownfield or greenfield investments in AC and LED components in India qualify, provided they meet the specified incremental sales and investment thresholds.

Q: What are the financial incentives offered?

Eligible companies receive financial incentives of 4% to 6% on net incremental sales of goods manufactured in India under the scheme.

Q: How long will the scheme be in effect?

The scheme is active from financial year 2021-22 to 2028-29, with incentives offered for five years on incremental sales during this period.

Q: What if a company fails to meet the eligibility criteria in a particular year?

An applicant who fails to meet the threshold investment and incremental sales criteria in a particular year will not receive incentive disbursement for that year. They may, however, claim incentives in later years if the criteria are satisfied at that time.

Q: How does this scheme benefit the broader Indian economy?

The scheme aims to boost domestic value addition, generate employment, and increase production and exports while building a complete component-to-final-product ecosystem in India to reduce import dependence.

Sectors

  • Manufacturing Industrial
  • Pli Scheme
  • White Goods
  • Air Conditioners
  • Led Lights
  • Domestic Manufacturing
  • Supply Chain
  • Incentive

Details last verified on 3 August 2026. Source: the issuer's published information.