Govt to reopen application window for PLI scheme for ACs, LED lights | Economy & Policy News

The government on Monday said it will reopen the window to accept fresh applications from companies willing to invest and seek benefits under the production-lined incentive scheme for white goods, including ACs and LED lights.

The window, according to the commerce and industry ministry, will be opened from July 15 for 90 days till October 12. No application shall be accepted after the closure of the application window.

Under the scheme, the government provides fiscal incentives on incremental sales of goods manufactured in India.

Further, to maintain liquidity in the business, better working capital management, and enhance operational efficiency of beneficiaries, it has been decided to introduce the system of quarterly claims processing of PLI in place of processing of claims on an annual basis. Earlier, companies used to submit their claims on an annual basis.

The PLI (production linked incentive) scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharma, with an outlay of Rs 1.97 trillion.

So far, only Rs 9,700 crore has been disbursed to PLI beneficiaries, which is about 5 per cent of the total estimates.

The ministry said that the industry has an appetite to invest more under the PLI scheme. This is the third round of applications invited under the scheme.

So far, 66 applicants with committed investments of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme.

Under the guidelines of the scheme, applicants shall only be eligible for incentives for the remainder of the scheme’s tenure.

“The applicant approved in the proposed third round would be eligible for PLI for a maximum three years only in the case of new applicants and existing beneficiaries opting for an investment period up to March 2023 seeking to move to a higher investment category,” it said.

Existing beneficiaries who opted for the investment period up to March 2022 and seek moving to a higher investment category in the proposed third round would be eligible for PLI for a maximum two years only.

The Union Cabinet had given approval for the PLI scheme for white goods for manufacturing of components and sub-assemblies of air-conditioners (ACs) and LED lights on April 7, 2021.

The scheme is to be implemented over a seven-year period, from 2021-22 to 2028-29, and has an outlay of Rs 6,238 crore.

First Published: Jul 08 2024 | 3:44 PM IS