Modi government reopens PLI scheme for ACs, LED lights
What's the story
The Indian government has reopened the application window for its Production Linked Incentive (PLI) Scheme, specifically targeting air conditioners (ACs) and LED lights. The window will remain open from September 15 to October 14. The move comes in response to a growing interest from the industry to invest more under this scheme, according to an official statement.
Scheme details
Aim to boost domestic manufacturing
The PLI scheme is part of the government's effort to promote domestic manufacturing and reduce dependence on imports. It offers incentives to companies that meet certain production targets. The decision to reopen the application window comes as a response to strong industry interest in expanding investments under this scheme. Both new applicants and existing participants looking to scale up or switch categories will be allowed, provided they meet certain conditions.
Eligibility criteria
Application deadline and support limits
Successful applicants in this round will be eligible for incentives for the remaining duration of the scheme. However, applications will not be accepted after the deadline. For new entrants or beneficiaries choosing a longer gestation route to move into higher investment categories, support will be limited to two years. This is aimed at ensuring fairness and avoiding discrimination while encouraging greater participation in the scheme.
Investment impact
Progress under the PLI scheme
So far, 83 companies with a total investment of ₹10,406 crore have been approved under the PLI scheme. The projects cover the entire AC and LED value chain, including critical components that are not sufficiently manufactured in India. The Union Cabinet had approved this scheme in April 2021. It is to be implemented over seven years until FY 2028-29 with an overall outlay of ₹6,238 crore.