Central Govt. notified Changes in Production Linked Incentive Scheme for White Goods like ACs and LED Lights

Additional changes to the Scheme Guidelines have been made in order to streamline the operation of the Scheme and increase business efficiency. These changes were made in response to requests and suggestions from Industry Associations and Beneficiaries of the Production Linked Incentive Scheme for White Goods.

Under the Scheme Guidelines of the PLI Scheme for White Goods (ACs and LED Lights), the following modifications have been made:

a. Adoption of Cost-Plus method in place of CUP (comparable uncontrolled price) method for calculation of sales prices in case of captive consumption or supplies to group companies. It also required amendment in the definition of ‘Arm’ length’;

b. Consider investments in Tool room for manufacturing of Mould and Dies etc. as eligible investment under Capital Investment;

c. Allowing one more year over and above two years, permitted for informing by beneficiaries about establishment of additional manufacturing facility;

d. Revision of last date of submission of filing the claim and refund of excess incentive by the beneficiary on account of discrepancy between statutory compliance and records provided at the time of filing of claim(s), if any;

e. Site visit by Administrative Ministry;

f. Roll over of Bank Guarantee;

g. Appropriate changes in Annexures to the Scheme Guidelines.

The PLI Scheme for White Goods for the production of components and sub-assemblies of ACs and LED Lights was approved by the Union Cabinet chaired by the Prime Minister on April 7, 2021, in accordance with the Prime Minister’s clarion call for “Atmanirbhar Bharat” to bring manufacturing to the forefront and emphasise its significance for driving India’s growth and creating jobs.

The scheme will be implemented over seven years, from FY 2021–2022 to FY 2028–2029, and it will cost Rs.6,238 crore in total. The Department for Promotion of Industry and Internal Trade (DPIIT) announced the programme on April 16, 2021. On June 4th, 2021, the guidelines for the scheme were released. Two corrigenda to the Scheme Guidelines were published on the 16th of August, 2021, and the 24th of February, 2022, respectively, based on additional stakeholder consultations for the scheme’s smooth implementation.

The programme is currently in use. Out of the 64 chosen beneficiaries, 15 have begun commercial production if they chose the gestation period through March 31, 2022. The remaining beneficiaries, who selected the gestation period up to March 31, 2023, are in various stages of implementation.

The PLI Scheme for White Goods aims to integrate India into the global supply chains by developing a complete component ecosystem for the country’s LED and air conditioner industries. It is anticipated that domestic value addition will increase from the current 15-20% to 75-80%.