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Dated: 24.01.2026

India’s Production Linked Incentive (PLI) Scheme for White Goods​ ​

The Government of India has launched the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) to boost domestic manufacturing, attract investments, and create a robust ecosystem for component manufacturing. ​ This initiative is a part of India’s larger vision to make the country a global manufacturing hub. ​ In this blog, we will explore the PLI Scheme for White Goods in detail, including its objectives, eligibility criteria, target segments, application process, and benefits.

Introduction to the PLI Scheme for White Goods

The PLI Scheme for White Goods was notified on April 16, 2021, with a total budgetary outlay of ₹6,238 crore. The scheme is designed to provide financial incentives ranging from 4% to 6% on net incremental sales (net of taxes) over the base year (FY 2019-20) or FY 2020-21, whichever is higher. ​ The scheme will be implemented over eight years, from FY 2021-22 to FY 2028-29. ​

Objectives of the PLI Scheme

The PLI Scheme for White Goods aims to:

1. Promote Domestic Manufacturing: Encourage local production of components for Air Conditioners and LED Lights. ​
2. Attract Large Investments: Facilitate large-scale investments in the manufacturing value chain. ​
3. Create Economies of Scale: Enhance production efficiency and reduce costs. ​
4. Boost Exports: Strengthen India’s position in the global market for white goods.
5. Generate Employment: Create job opportunities in the manufacturing sector. ​
6. Develop a Robust Component Ecosystem: Build a strong supply chain for white goods components. ​

Target Segments and Eligible Products ​

The scheme supports companies engaged in manufacturing components for Air Conditioners and LED Lights. ​ Below are the target segments and eligible products:

Air Conditioners

1. AC Components:
   • High-value intermediaries (e.g., compressors, copper tubes, aluminum stock for foils/fins). ​
   • Low-value intermediaries (e.g., control assemblies, motors, heat exchangers, plastic molding components). ​
   • Combination of high-value and low-value intermediaries. ​
2. High-Value Intermediaries:
   • Compressors (including oil-free and high-capacity). ​
   • Copper tubes (plain and/or grooved). ​
   • Aluminum stock for foils or fins for heat exchangers. ​
3. Low-Value Intermediaries:
   • Control assemblies for IDU/ODU/remotes. ​
   • Display panels (LCD/LED). ​
   • Motors, cross-flow fans, valves, heat exchangers, sheet metal components, and plastic molding components. ​

LED Lights

1. Core Components:
   • LED chip packaging, integrated circuits (ICs), resistors, fuses, and large-scale investments in LED components. ​
2. LED Components:
   • LED chips, drivers, engines, modules, PCBs, mechanical housing, wire-wound inductors, heat sinks, diffusers, ferrite cores, and other components.

Quantum of Incentive ​

The incentive is capped based on the following:

• Air Conditioners: Net incremental sales of eligible products up to 5 times the cumulative threshold investment in the previous financial year. ​
• LED Lights: Net incremental sales of eligible products up to 6 times the cumulative threshold investment in the previous financial year. ​

Eligibility Criteria

To qualify for the PLI Scheme, applicants must meet the following criteria:

1. Company Incorporation: The applicant must be a company incorporated under the Companies Act, 2013. ​
2. Foreign Investment Compliance: Foreign investment must comply with the FDI Policy 2020. ​
3. Project Type: Applicants must propose greenfield or brownfield projects for manufacturing eligible products. ​
4. Quality Standards: Manufacturing facilities must conform to prescribed standards. ​
5. Threshold Investment: Minimum cumulative investment as specified in Appendix-I or Appendix-IA must be met. ​
6. Financial Attributes: Applicants must meet minimum Gross Block, Global Revenue, and Net Worth requirements. ​

Key Features of the Scheme ​

1. Captive Consumption:
   • Captive consumption of eligible products is considered part of net sales turnover, provided at least 60% of the consumption is used in manufacturing ACs and LED Lights. ​
2. Flexibility in Manufacturing:
   • Applicants can manufacture multiple eligible products under a target segment to meet investment and revenue thresholds. ​
3. Exit Clause:
   • If a selected applicant exits the scheme without fulfilling the investment criteria, the bank guarantee will be invoked, and the applicant must refund the availed incentive with interest. ​

Application Process

1. Application Window:
   • The application window was open from June 15, 2021, to September 15, 2021. ​ Applications may be invited during the scheme’s tenure for specific target segments if required. ​
2. Application Fee:
   • A non-refundable application fee of ₹1,00,000 must be paid electronically through the Bharat Kosh portal. ​
3. Mandatory Documents:
   • Applicants must submit various documents, including incorporation certificates, audited financial statements, shareholder structure, and statutory auditor certificates.

Disbursement of Incentives ​

1. Claim Submission:
   • Applicants must submit claims for disbursement of incentives annually, along with audited financial statements. ​
2. Disbursement Timeline:
   • PLI for a respective year will be disbursed in the subsequent year, subject to meeting the investment and sales thresholds. ​

Benefits of the PLI Scheme ​

1. Financial Incentives: Companies can receive up to 6% incentive on incremental sales. ​
2. Encourages Innovation: Investment in R&D and technology transfer is supported. ​
3. Boosts Local Manufacturing: Reduces dependency on imports and strengthens domestic production. ​
4. Employment Opportunities: Creates jobs across the manufacturing value chain. ​
5. Global Competitiveness: Enhances India’s position in the global white goods market.

Conclusion

The PLI Scheme for White Goods is a transformative initiative aimed at making India a global hub for manufacturing Air Conditioners and LED Lights. ​ By incentivizing domestic production, the scheme addresses sectoral challenges, promotes innovation, and creates employment opportunities. ​ Companies interested in participating must carefully review the eligibility criteria, target segments, and application process to ensure compliance and maximize benefits under the scheme.

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Source: DPIIT

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