Govt reopens window for white goods PLI scheme as firms are keen to invest

New Delhi, July 8 (SocialNews.XYZ) The Ministry of Commerce and Industry announced on Monday that the application window for the production-linked incentive (PLI) scheme for white goods (ACs and LED Lights) is being reopened “based on the appetite of the industry to invest more under the scheme.”

The ministry said this was an outcome of the growing market and confidence generated due to the manufacturing of key components of ACs and LED Lights in India under the PLI scheme for white goods.

The application window is being opened on the same terms & conditions stipulated in the PLI white goods scheme notified on April 16, 2021, and the guidelines issued on June 4, 2021, as amended from time to time, the ministry said in a statement.

The application window for the scheme will remain open for the period from July 15, 2024, to October 12, 2024 (inclusive) on the same online portal having the URL as https://pliwhitegoods.ifciltd.com/. No application will be accepted after the closure of the window, the statement added.

In order to avoid any discrimination, both new applicants as well as existing beneficiaries of the PLI white goods scheme who propose to invest more by way of switching over to a higher target segment or their group companies applying under different target segments would be eligible to apply subject to fulfilling the eligibility conditions and adhering to the investment schedule as mentioned in the guidelines of the scheme.

The applicant approved in the proposed third round would be eligible for PLI for a maximum period of three years only in the case of new applicants and existing beneficiaries opting for an investment period up to March 2023 seeking to move to a higher investment category. Existing beneficiaries opting for an investment period up to March 2022 seeking to move to a higher investment category in the proposed third round would be eligible for PLI for a maximum of two years only.

Existing beneficiaries opting for the above, in case they are not able to achieve the threshold investment or sales in a given year, will be eligible to submit the claims as per their original investment plan. However, this flexibility will be provided only once during the scheme period.

Further, to maintain liquidity in the business, better working capital management, and enhance the operational efficiency of beneficiaries, it has been decided to introduce the system of quarterly claims processing of PLI in place of processing of claims on an annual basis. Necessary amendments are incorporated in the Scheme Guidelines to clarify the above.

So far, 66 applicants with committed investments of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme. Daikin, Voltas, Hindalco, Amber, PG Technoplast, Epack, Mettube, LG, Blue Star, Johnson Hitachi, Panasonic, Haier, Midea, Havells and Lucas, are among the companies manufacturing components of Air conditioners (ACs).

Similarly, in manufacturing components of LED lights, companies like Dixon, RK Lighting, Crompton Greaves, Stove Kraft, Chenfeng, Luker and Fulham etc, have invested. These investments will lead to the manufacturing of components of Air Conditioners and LED Lights across the complete value chain including components which are not manufactured in India presently with sufficient quantity.

The Union Cabinet had given approval for the PLI Scheme for White Goods for the manufacture of components and sub-assemblies of Air Conditioners (ACs) and LED Lights on April 7, 2021, as part of Prime Minister Narendra Modi’s ‘Atmanirbhar Bharat’ drive to bring manufacturing at the centre stage and emphasise its significance in driving India’s growth and creating jobs. The Scheme is to be implemented over a seven-year period, from FY 2021-22 to FY 2028-29 and has an outlay of Rs 6,238 crore.

Source: IANS