The objective of the PLI Scheme for White Goods

The objective of the scheme is to boost domestic manufacturing and facilitate the development of a robust ecosystem for component manufacturing across the value chain in the country for Air conditioners (ACs) and LED Lights.

• The primary objective of the scheme is to remove sectoral disabilities
• The scheme also aims to create economies of scale and to enhance exports
• PLI Scheme for White Goods’ objective is to create a robust component ecosystem and employment generation.

Eligible Applicant for PLI Scheme

The eligible applicant under the Production Linked Incentive Scheme for White Goods is as follows:

• Any company incorporated in India and as defined under the provisions of the Companies Act 2013 and Companies Act, 1956, to manufacture one or more eligible products under the specified target segments are eligible for the scheme.
• Any company incorporated in India and as defined in the Companies Act 2013, proposing to manufacture one or more eligible products under the specified target segment can be an applicant.

Note: LLPs are not covered under the Companies Act, 2013. Therefore, LLPs cannot avail of PLI benefits under this Scheme.

Pre-Qualification Criteria under PLI Scheme

• The applicant should be a company incorporated in India under the provisions of the Companies Act, 2013
• Foreign (non-resident) investment in the Applicant Company shall comply with the FDI Policy 2020, as amended from time to time
• An applicant must propose setting up of greenfield or brownfield project for manufacturing of one or more eligible products under any investment category in the respective target segment as defined in the scheme guideline
• An applicant should commit to setting up manufacturing facilities to manufacture eligible products along with appropriate quality and testing facilities conforming to prescribed Standards commensurate with committed incremental sales

• Value-Added Resellers shall not qualify under the scheme
• The applicant and its group company should neither have been declared as bankrupt or willful defaulter or defaulter nor reported as fraud by any bank or financial institution or non-banking financial company
• An applicant availing benefits under any other PLI scheme of the Government of India for the same product shall not be eligible under this PLI scheme

Eligible Products under PLI Scheme

Support under the PLI Scheme will be provided to companies engaged in manufacturing components of Air Conditioners and LED Lights in India. The list of Target segments and Eligible products are as under:

Target Segment and Eligible Products – Air Conditioners

ACS (Components)

• High-value Intermediaries of ACs
• Low-Value Intermediaries of ACs
• A combination of High-value Intermediaries of ACs and Low-Value Intermediaries of ACs

High-Value Intermediaries of ACs

• Compressors including oil-free and high capacity
• Copper Tube (plain and/or grooved)
• Aluminum Stock for Foils or Fins for heat exchangers

Low-Value Intermediaries of ACs

• Control Assemblies for IDU or ODU or Remotes
• Display Panels (LCD/LED)
• Motors
• Cross Flow Fan (CFF)
• Valves & Brass components
• Heat exchangers
• Sheet Metal components
• Plastic Moulding components

Target Segment and Eligible Products – LED Lights

LED (Core Components)

• LED Chip Packaging
• Integrated Circuits (ICs)
• Resistor
• Fuses
• Large-scale investments in LED components

LED (Components)

• LED Chips
• LED Drivers
• LED Engines
• LED Modules
• Printed Circuit Boards (PCB) including Metal clad PCBs
• Mechanicals- Housing
• Wire Wound Inductors
• Drum Corps
• Heat Sinks
• Diffusers
• Ferrite Cores
• LED Light Management Systems (LMS)
• Resistors
• Fuses
• Capacitors
• LED Transformers
• Laminates for Printed Circuit Boards and Metal Clad PCBs
• Metalized film capacitors

Investment categories

There are two investment categories under each Target segment as given below. An applicant can apply under any one of the following investment categories for anyone target segment:

• Large Investment
• Normal Investment

Initial Investment Period (Gestation Period)

The initial Investment period (Gestation period) is the gestation time given for setting up manufacturing facilities to manufacture the eligible products. An applicant may opt for any one of the following initial investment periods

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

Tenure of the Scheme

The tenure of the Scheme shall be from Financial Year 2021- 2022 to Financial Year 2028- 2029.

Application Fee

An application fee of Rs.100000 needs to be paid electronically to DGFT for applying the Production Linked Incentive (PLI) Scheme for White Goods. The details of bank account fee payment will be provided on the application portal.

Documents Required for PLIWG Application

The following documents are mandatory to apply for Production Linked Incentive (PLI) Scheme for White Goods

• Certificate of Incorporation and Corporate Identification Number
• Memorandum of Association
• Article of Association
• IEM/IL
• MSME Registration Certificate
• Importer Exporter Code (IEC) Registration Certificate
• Audited Financial Statement of FY 2019-2020
• Audited Balance Sheet and Profit and Loss Statement of FY2019-2020
• Chartered Accountant Certificate for existing investment in plant and machinery (Gross Block) Net Sales Revenue and Net worth as on 31.03.2020
• Shareholder Structure
• Top 10 Shareholders list as on 31.03.2020
• Resolution from Board of Directors
• Letter authorizing the signing authority
• Technology Transfer Agreement
• Detailed Manufacturing Process note
• Detailed Manufacturing Flow Chart with inputs required in each stage in the process flow chart and the output at each stage of Manufacturing
• Other Business Agreement

Application Procedure for PLI Scheme for White Goods

The application window for the scheme shall be open for a period from 15^th June 2021 to 15^th September 2021 on the official website of the PLI Scheme for White Goods.