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

The Production Linked Incentive (PLI) Scheme for White Goods, covering Air Conditioners and LED Lights, is run by the Ministry of Commerce and Industry, Government of India. It seeks to strengthen domestic manufacturing, lower India's dependence on imports, and build a dependable local supply chain for critical components and sub-assemblies of Air Conditioners and LED Lights. Through financial incentives, the government intends to establish India as a significant participant in the global manufacturing ecosystem for these white goods.

The scheme's coverage is precisely laid out. It applies to companies that commit substantial investment in brownfield or greenfield manufacturing facilities within India. Components covered for ACs include compressors, copper tubes, heat exchangers, motors, and control assemblies. For LED Lights, the scheme covers LED chips and packaging, drivers, and light-management systems.

The stated objective is a considerable rise in domestic value addition — from roughly 15-20% to a target of 75-80% — which would reinforce India's self-reliance and generate substantial employment across the manufacturing sector. The scheme operates from FY 2021-22 to FY 2028-29, reflecting a long-term commitment to reshaping white goods manufacturing.

1. **Step 01:** Go to the Department for Promotion of Industry and Internal Trade (DPIIT) official website and sign up on the PLI-WG Online Portal. Registration generally requires opening an account and furnishing essential particulars about your company.

2. **Step 02:** Fill in the full online application form, taking care that every mandatory field is completed correctly. Alongside this, upload the required supporting documents — ordinarily financial statements, investment plans, production forecasts and company registration documents. Payment of an application fee forms part of the submission.

3. **Step 03:** The competent authority will examine the application in detail. At this stage, the information supplied is checked against the scheme guidelines, proposed investments are assessed, and projected incremental sales are verified. Approval follows only if all stringent requirements and criteria are satisfied.

4. **Step 04:** Once approved, participants must follow every stipulated compliance procedure and guideline for the entire duration of the scheme so that eligibility for incentive disbursements is retained. This entails reporting at regular intervals on production, sales and investments.

A designated committee, which is expected to include specialists from the Ministry of Commerce and Industry and associated bodies, carries out a rigorous review of each application. The assessment weighs the proposed investment, the incremental sales projected by the applicant, and the applicant's ability to add domestic value in the AC and LED component manufacturing sectors. Meeting the financial and operational thresholds set out in the scheme guidelines is also a decisive criterion.

Shortlisting may run through several rounds of assessment, after which the competent authority grants approval to the proposals that are both strongest and fully compliant. This structure ensures that incentives go only to manufacturers genuinely positioned to advance the scheme's objectives.