PLIWG
Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)
4.9/10The scheme targets manufacturers of components / sub-assemblies of Air Conditioners & LED Lights and offers 4–6% incentive on incremental sales to boost localization, reduce imports, and build a domestic supply chain.
States / UT: All India
Ministry / nodal: Ministry Of Commerce And Industry
Nodal department: Department For Promotion Of Industry And Internal Trade
Scheme for: Individual
Scheme profile
DBT (direct benefit transfer): No
Scheme open date: 2021-04-16
Categories: Business & Entrepreneurship
Tags: PLI, White Goods, DPIIT, AC, LED, Incentive
Details
The scheme targets manufacturers of components / sub-assemblies of Air Conditioners & LED Lights and offers 4–6% incentive on incremental sales to boost localization, reduce imports, and build a domestic supply chain.
Objective & Scope
The objective is to boost domestic manufacturing, reduce import dependence, build a strong component ecosystem for white goods, and position India in the global supply chain.
The scheme targets companies that invest in manufacturing components or sub-assemblies for:
- Air Conditioners (ACs) — e.g. compressors, copper tubes, heat exchangers, motors, control assemblies, etc.
- LED Lights — e.g. LED chips & packaging, LED drivers, LED engines, light-management systems, and other components in the LED-light value chain.
Implementation Period & Financial Outlay
- The scheme runs from FY 2021-22 to FY 2028-29
- Total approved outlay is Rs 6,238 crore.
- Incentives under the scheme are provided for a period of 5 years on incremental sales (after one / two year gestation period), over the base year.
Benefits
- 1. Eligible companies get financial incentives ranging from 4% to 6% — on net incremental sales of goods manufactured in India under the scheme. 1. The goal is to significantly raise domestic value addition — from existing ~15–20% to ~75–80%. 1. Large incremental production and exports of AC & LED components. 1. Creation of substantial employment (direct + indirect) across manufacturing ecosystem. 1. Development of a complete “component-to-final-product” ecosystem, reducing dependence on imports
- Eligible companies get financial incentives ranging from 4% to 6% — on net incremental sales of goods manufactured in India under the scheme.
- The goal is to significantly raise domestic value addition — from existing ~15–20% to ~75–80%.
- Large incremental production and exports of AC & LED components.
- Creation of substantial employment (direct + indirect) across manufacturing ecosystem.
- Development of a complete “component-to-final-product” ecosystem, reducing dependence on imports.
Eligibility
- Incentive under the Scheme shall be provided to Companies making brown field or green field Investments for manufacturing in target segments in India.
- Eligibility shall be subject to achievement of thresholds of net incremental sales of Eligible Products for the respective financial year over the base year or net incremental sales of eligible products over the base year or FY 2020-21, whichever is higher, as the case may be and cumulative incremental investment in the preceding financial year, which shall not be less than the threshold investment as detailed in Appendix-I or Appendix IA of the Scheme Guidelines, as the case may be.
- In case an applicant does not meet criteria of threshold investment and threshold net incremental sales for any given year, the applicant shall not be eligible for disbursement of incentive for that particular financial year. However, the applicant will not be restricted from claiming incentive for subsequent years during the tenure of the Scheme, provided eligibility criteria of cumulative committed investment and threshold net incremental sales are met for such subsequent financial years.
- The incremental sales of eligible products should be commensurate with created production capacity from investments committed under the scheme.
- For the purpose of determining eligibility of an applicant with respect to incremental investment, the investment covered under any other PLI Scheme of Govt. of India of the Applicant shall not be considered for determining eligibility under this PLI Scheme and vice-versa.
- In every financial year for which the incentive is claimed, the net sales turnover of eligible products of the selected applicant and its group companies shall not be less than the sum of their net sales turnover of eligible products manufactured in India in the base year for applicants meeting the pre-qualification criteria on the basis of financial attributes of base year and higher of net sales turnover of eligible products in the base year or FY 2020-21, for applicants meeting the pre-qualification criteria on the basis of financial attributes of FY 2020-21; along with the corresponding threshold incremental net sales turnover of the selected applicant as detailed in Appendix-1 or Appendix-IA of the Scheme Guidelines, as the case may be.
- For applicants opting for initial investment period as 1st April, 2021 to 31st March, 2023, the first and last year of achieving the required corresponding threshold incremental sales for availing the PLI shall be FY 2023-2024 and FY 2027-28 respectively as detailed in Appendix -IA of the Scheme Guidelines.
How useful is this scheme?
A practical look at this scheme for citizens
AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.
- Accessibility5.0
- Financial impact4.0
- Rural utility4.0
- Awareness7.5
- Simplicity6.0
- Inclusivity3.0
What problem does this scheme solve?
The scheme primarily benefits manufacturers in the white goods sector, aiming to enhance domestic production and reduce import reliance.
Key challenges addressed
- Boosting domestic manufacturing
- Reducing import dependence
- Creating employment opportunities
Most beneficial for
- Manufacturers of Air Conditioners and LED Lights
- Companies investing in component manufacturing
Likely challenges
- Complex eligibility criteria
- High initial investment requirements
- Limited awareness among small manufacturers
Practical insights for citizens
The scheme may not be practical for small-scale manufacturers in rural areas due to high investment and digital requirements.
Rural challenges
- Limited access to online application processes
- Lack of awareness among rural manufacturers
Digital challenges
- High digital dependency for application submission
- Limited internet access in rural areas
Implementation bottlenecks
- Complex eligibility verification
- Potential delays in incentive disbursement
Awareness challenges
- Low awareness among small manufacturers
- Limited outreach efforts by the government
Application analysis
- Application mode
- Online portal
- Documents burden
- Moderate
- Verification complexity
- High
- Office dependency
- Low
- DBT dependency
- No
- CSC support
- No
- Estimated citizen effort
- High
Estimated beneficiary reach
Benefit analysis
- Benefit type
- Cash
- Benefit frequency
- Annual based on incremental sales
- Benefit practicality
- Moderate, dependent on meeting sales thresholds
- Financial meaningfulness
- High for eligible manufacturers
- Long-term impact
- Positive impact on domestic manufacturing ecosystem
Plain-language guidance
This scheme provides financial incentives to manufacturers of Air Conditioners and LED Lights based on their sales growth. It aims to boost local production and create jobs.
- Who should apply
- Manufacturers of components for Air Conditioners and LED Lights in India.
- Who may struggle
- Small manufacturers and those with limited digital access.
- Best application route
- Apply directly through the PLI-WG Online Portal.
This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.
Application Process
Online
Step 01: Visit the official website of the Department for Promotion of Industry and Internal Trade (DPIIT) and register on the PLI-WG Online Portal.
Step 02: Complete the online application form, upload all necessary documents, and pay the application fee.
Step 03: Your application will be reviewed, and approval will be granted by the competent authority if all requirements are met.
Step 04: After approval, follow all required compliance procedures and guidelines to maintain eligibility.
Clarifications
Additional points from the scheme information published on myScheme (not legal advice).
- What financial benefit does the PLI Scheme for White Goods provide
It offers 4%–6% incentive on net incremental sales of eligible products over the base year for 5 years.
- How does the scheme support domestic manufacturing?
It encourages investment in new manufacturing facilities for AC and LED components, boosting localization and reducing imports.
- Can companies benefit from economies of scale?
Yes. Up to 40% of incremental sales of eligible products may be to sectors outside AC/LED, enabling economies of scale.
- Does the scheme support component-level expansion?
Yes. Companies can invest in multiple eligible components within a target segment; backward integration investments are also eligible.
- Is captive consumption eligible for incentive?
Yes. Captive consumption counts as net sales turnover if at least 60% goes into AC/LED manufacturing.
- When are incentives disbursed?
Incentives are disbursed the year after meeting both investment and sales thresholds, provided that the requisite conditions are met
- Who can apply under the PLI White Goods Scheme?
Only companies incorporated in India under the Companies Act (2013 or 1956). LLPs cannot apply.
- What are the pre-qualification financial criteria?
Minimum Gross Block, Global Revenue, and Net Worth thresholds must be met for each target segment.
- Is an applicant allowed if it benefits from another PLI scheme for the same products?
No. Double benefits for the same product across PLI schemes are not allowed
- Where is the application submitted?
Applications must be submitted online via the PLI-WG portal.
- What is the application window?
The scheme opens applications for specified windows; initial was 15 June–15 Sept 2021 with possible later rounds.
- What is the application fee and payment mode?
Rs 1,00,000 to be paid online
Official links
References
- Scheme Website
- https://pliwg.dpiit.gov.in/
- Gazette Notification
- https://pliwg.dpiit.gov.in/docs/PLIWG%20Notification-16042021.pdf
- Scheme Guidelines
- https://pliwg.dpiit.gov.in/docs/Guidelines%20for%20the%20PLI%20Scheme04062021.pdf
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) is a government welfare initiative designed to support Individual through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Eligibility for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Benefits under Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) is managed by Department For Promotion Of Industry And Internal Trade and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Yes, eligible applicants may be able to apply online for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Applications for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) a central government scheme?
- Yes, Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
- Does Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) provide business loan or startup assistance?
- Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
- Is collateral required under Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
- Can CSC centres help users apply for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Are there deadlines for applying to Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
- Can beneficiaries track application status for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) in All India?
- Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.