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Monday, September 15, 2025

Government Reopens PLI Scheme for Air Conditioners and LED Lights: Fresh 30-Day Application Window

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Government Reopens PLI Scheme for Air Conditioners and LED Lights: Fresh 30-Day Application Window

The Indian government has announced the reopening of applications for the Production Linked Incentive (PLI) Scheme targeting white goods manufacturing, specifically air conditioners and LED lighting products. The Department for Promotion of Industry and Internal Trade (DPIIT) has provided a 30-day application window from September 15 to October 14, 2025, offering both new investors and existing beneficiaries another opportunity to participate in this strategic manufacturing initiative.

Fourth Round of Applications Under Manufacturing Push

This latest application window represents the fourth round since the scheme's initial notification in April 2021. Government officials indicate that the decision to reopen applications stems from robust industry interest in expanding manufacturing capabilities for key components, driven by increasing domestic demand and enhanced investor confidence in India's manufacturing sector.

The timing of this reopening reflects the government's commitment to accelerating domestic manufacturing capabilities while supporting the broader Atmanirbhar Bharat initiative aimed at reducing import dependency.

Unchanged Terms with Expanded Opportunities

The scheme maintains its original terms and conditions as established in April 2021, with subsequent amendments remaining intact. All applications must be submitted exclusively through the dedicated online portal, with no extensions beyond the October 14 deadline.

Both fresh applicants and current scheme participants are eligible to apply. Existing beneficiaries can explore opportunities to advance into higher target segments or submit applications through group companies in different categories, subject to meeting eligibility criteria and adhering to prescribed investment schedules.

Limited Benefit Duration for New Participants

A crucial consideration for potential applicants is the remaining tenure of PLI benefits. Since the scheme operates until FY29, new participants approved in this round will only receive incentives for the remaining period.

Depending on their investment category, new applicants may qualify for benefits spanning a maximum of two years. Meanwhile, existing beneficiaries transitioning to different categories might only be eligible for one year of support, making timing a critical factor in application decisions.

Impressive Industry Response and Investment Commitments

Since its launch, the PLI scheme for White Goods has demonstrated remarkable success in attracting private sector participation. The initiative has secured 83 beneficiaries with total committed investments worth ₹10,406 crore.

These substantial investments encompass manufacturing activities across the entire value chain for AC and LED components, including products that were previously not manufactured domestically in adequate quantities. This comprehensive approach addresses critical gaps in India's manufacturing ecosystem.

Strategic Focus on Component Manufacturing

The scheme specifically targets sub-assemblies and components for air conditioners and LED lights, addressing key bottlenecks in India's white goods manufacturing sector. By focusing on component-level manufacturing, the initiative aims to build a robust domestic supply chain that can support finished goods production.

This component-focused approach is particularly significant as it addresses the historical challenge of import dependency for critical manufacturing inputs, thereby strengthening the overall competitiveness of Indian manufacturers.

Substantial Government Financial Commitment

The PLI scheme for White Goods operates with a substantial government outlay of ₹6,238 crore, implemented over seven years from FY22 to FY29. This significant financial commitment underscores the government's priority on developing competitive manufacturing capabilities in the white goods sector.

The scheme's multi-year structure provides investors with the stability and predictability necessary for long-term manufacturing investments, while the incentive structure encourages scaling up of production volumes.

Atmanirbhar Bharat Vision Implementation

This PLI scheme represents a concrete implementation of the government's Atmanirbhar Bharat vision, approved by the Union Cabinet in April 2021. The initiative directly supports India's goal of achieving self-reliance in critical manufacturing sectors while reducing dependence on imports.

Government officials emphasize that complementary policy measures, including tariff reforms and GST modifications, have already created positive momentum for consumer goods manufacturing. The continued investment through the PLI scheme is expected to amplify these benefits.

Employment Generation and Economic Impact

Beyond manufacturing capabilities, the scheme is designed to create substantial employment opportunities across the white goods sector. The focus on component manufacturing is particularly beneficial for job creation, as it requires diverse skill sets and generates employment across multiple tiers of the supply chain.

The economic impact extends beyond direct employment, as enhanced domestic manufacturing capabilities reduce foreign exchange outflows while building indigenous technological capabilities.

Application Process and Key Deadlines

Interested applicants must submit their proposals through the dedicated online portal at https://pliwg.dpiit.gov.in/. The government has emphasized that no applications will be accepted after the October 14, 2025 deadline, making timely submission crucial for potential beneficiaries.

The online application process ensures transparency and efficiency in evaluation, while providing applicants with clear guidelines and requirements for scheme participation.

This reopening of the PLI scheme represents a strategic opportunity for manufacturers to participate in India's manufacturing transformation while contributing to the nation's self-reliance goals in the white goods sector.

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