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Overview

White goods refer to heavy consumer durables or large home appliances, which were traditionally available only in white. They include appliances such as washing machines, air conditioners, stoves, refrigerators, etc. The white goods industry in India is highly concentrated. Indian appliance and consumer electronics (ACE) market reached INR 76,400 crore (~$10.93 bn) in 2019. Appliances and consumer electronics industry is expected to double to reach INR 1.48 lakh crore (~$21.18 bn) by 2025.

The Indian LED Lights sector encompasses different segments like automotive lighting, general lighting and backlighting in commercial, residential, and industrial applications. The expected revenue growth in the Indian LED lighting market is at 12% CAGR.

The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale, and ensuring efficiencies. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large-scale employment opportunities and enhance exports substantially.

Scheme Outcome- 42 applicants with committed investments of INR 4,614 crore have been provisionally selected as beneficiaries under the PLI scheme. The selected applicants include 26 for Air Conditioner manufacturing with committed investments of INR 3,898 crore and 16 for LED Lights manufacturing with committed investments of INR 716 crores.

About the Scheme

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

The Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of Air Conditioners and LED Lights in India of upto INR 6,238 crores ($855 mn) has been approved to be given over a period of 5 years.

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Scheme
  • English
Guidelines
  • English

Applications Closed

Highlights

  • Eligibility

    Eligibility

    1. Indian / Foreign / JV company
    2. Threshold of cumulative investment
    3. Threshold of incremental sales

  • Tenure

    Tenure

    5 years from FY 2021-22 to FY 2028-29. An applicant may opt for any one of the following initial investment (gestation) periods:

    1. 1 April 2021 to 31 March 2022
    2. 1 April 2021 to 31 March 2023

  • Incentives

    Incentives

    The scheme will extend an incentive of 4-6% on incremental turnover over base year (2019-20) of goods sold in India and exported to global markets, to eligible companies for a period of 5 years.

  • Target Segments

    Target Segments

    1. High value and/ or Low value intermediaries for production of AC & LED Lights
    2. Each target segment will have two categories of investments: Large and Normal

Target Segments

S. No. Target Segment Eligible Products
1 ACs (Components)  
  1. High-value Intermediates of ACs
  2. Low-Value Intermediates of ACs
  3. A combination of (i) and (ii) 
2 High Value Intermediates  
of ACs 
  1. Compressor
  2. Copper Tube (plain and/ or grooved)
  3. Aluminum Stock for Foils or Fins for heat exchangers
3 Lower Value Intermediates  
of ACs 
  1. Control Assemblies for IDU or ODU or Remotes
  2. Display panel (LCD/LED)
  3. Motors
  4. Cross Flow Fan (CFF)
  5. Valves & Brass components
  6. Heat exchangers
  7. Sheet Metal components (viii) Plastic Moulding components

 

S. No. Target Segment Eligible Products
1 LED (Core Components)  
  1. LED Chip Packaging
  2. Integrated Circuits (ICs)
  3. Resistors
  4. Fuses
  5. Fuses
  6. Large – scale investments in LED components
2 LED (Components) 
  1. LED Chips
  2. LED Drivers
  3. LED Engines
  4. LED Modules
  5. Printed Circuit Boards (PCB) including metals clad PCBs
  6. Mechanicals - Housing
  7. Wire Wound Inductors
  8. Drum Cores
  9. Drum Cores
  10. Heat Sinks
  11. Diffusers
  12. Ferrite Cores
  13. LED Light Management Systems (LMS)
  14. Resistors
  15. Fuses
  16. Capacitors
  17. Laminate for PCBs and Metal clad PCBs
  18. Metallized films for capacitors

 

Eligibility

Applicant can be any company that should be incorporated in India under the provisions of the Company Act, 2013. Eligibility shall be subject to the achievement of thresholds of net incremental sales of Eligible Products for the respective financial year over the base year and cumulative incremental investment in the preceding financial year.

The Scheme is fund limited:

  1. For Air Conditioners: Net incremental sale of the eligible product(s) up to 5 times of the cumulative threshold investment in the previous financial year
  2. For LED Lights: Net incremental sale of the eligible product(s) up to 6 times of the cumulative threshold investment in the previous financial year

Pre-Qualification Criteria

Threshold investment prescribed for eligibility:

  • Gross Block: Gross Value of Plant, Machinery and Equipment in the audited financial statements:
    • 50% of threshold investment 
  • Global Manufacturing Revenue: Consolidated Revenue both in India and overseas, in the audited financial statement in the Base Year i.e., 01 April 2019 to 31 March 2020:
    • 5 times of threshold investment for the ‘Large Investment’ category 
    • 4 times for the ‘Normal Investment’ category
  • Net Worth: Aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure, and miscellaneous expenditure not written off, as per the audited balance sheet
    • 30% of threshold investment

Selection Criteria

  • Mere assembly of finished goods shall not be incentivized.
  • Applicants proposing to manufacture items deeper into the value chain of Eligible Products shall have a higher priority in selection.
  • Within a target segment, the ‘Large Investment’ category shall have a higher priority over the ‘Normal Investment’ category.

Process Flow

Step One

Application Process

  1. Registration on Scheme Portal - Applicant
    • Approval Email will be sent by PMA within 2 working days from registration.
  2. Submission of Application - Applicant
    • An Acknowledgement Email & SMS will be sent by to the applicant by the PMA post submission.
  3. Application Scrutiny and Appraisal - Project Management Agency (PMA)
    • Selection of applications to be completed within 60 days from closure of Application Window
  4. Intimation of Deficiencies in the application (if any) - PMA
    • Deficiencies in the application to be rectified (by applicant) within 15 working days from intimation
  5. Final Recommendation to DPIIT - PMA
    • PMA to scrutinize and submit recommendations to DPIIT, the Sanctioning Authority.
  6. Application Approval (based on decision of Competent Authority/DPIIT) - PMA
    • Letter of approval to be issued within 5 working days from date of receipt of approval by the Competent Authority.

FAQs

Frequently Asked Questions

  • Who can be an Applicant under the Production Linked Incentive Scheme for White Goods (PLI-WG Scheme)?

    Any company incorporated in India and as defined in the Companies Act 2013, proposing to manufacture one or more eligible product(s) under the specified target segment.

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  • Whether an applicant can apply for more than one Target Segments and Eligible Products?

    One entity may apply for any one category under one target segment only. However, separate Group companies may apply for different target segments.

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  • Whether a beneficiary under other PLI Scheme of Government of India can avail benefits for the same products under the PLI-WG scheme?

    No. Such applicants shall not be eligible under the PLI-WG scheme. However, the applicant can continue to avail incentives under other Central/ State schemes.

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  • What are the investment categories under each target segment?

    An applicant can apply under any one of the following investment categories for anyone target segment:

    1. Large Investment
    2. Normal Investment

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  • What is Initial Investment Period (Gestation Period)?

    An applicant may opt for any one of the following initial investment periods

    • 1 April 2021 to 31 March 2022
    • 1 April 2021 to 31 March 2023

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  • Is Investment on Land and Building covered under the scheme?

    The Investment in land and building (including factory building or construction) required for the project or unit is not covered and shall hence, not be considered for determining eligibility under the Scheme.

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  • Does an applicant proposing to manufacture more number of components in the entire value chain have higher priority in selection?

    A single applicant proposing to manufacture more components in the entire value chain will have the higher priority in selection

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  • Is investment in used plant and machinery an eligible investment?

    No. Investment in second hand/ used/ refurbished plant, machinery, equipment, utilities shall not be considered as eligible investment.

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  • What will be the threshold net incremental sales if an applicant makes higher investment than the threshold investment?

    In case an applicant makes higher investment than the threshold investment, the threshold incremental sale to be achieved by the applicant for achieving eligibility for incentive shall remain same for respective target segment as specified in Appendix-I or Appendix-IA of the scheme guideline, as the case may be.

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  • Does Captive Consumption of eligible products form part of Net Sales Turnover?

    Yes. Captive Consumption of eligible products shall form part of Net Sales Turnover.

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  • Which ‘Heads’ of eligible investment are capped and to what extent?

    • Investment in Research & Development shall not exceed 15% of the total committed investment.
    • Investment in Transfer of Technology shall not exceed 5% of the total committed investment.

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  • What would comprise R&D investments?

    Investment in Research and Development under these Guidelines shall include capital Investment on R&D and product development related to Target Segments and exclude the revenue expenditure.

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  • Do the Value-Added Resellers qualify under the scheme?

    No. Value-Added Resellers do not qualify under the scheme. 

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  • What is the amount of Application fee?

    The amount of non-refundable application fee is INR 1,00,000/-

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Team

  • Ravneet Mann

    Ravneet Mann

    Principal Investment Specialist

  • Varda Taneja

    Varda Taneja

    Principal Investment Specialist

  • Neelashi Shukla

    Neelashi Shukla

    Investment Specialist

  • Dilsher Dhupia

    Dilsher Dhupia

    Associate

Contact Us

Write to us and we will get in touch with you shortly

consumer.goods@investindia.org.in