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White Goods PLI application window reopened for a month

The Ministry of Commerce and Industry has reopened the application window for the PLI Scheme for White Goods (ACs and LED lights) for a period of 30 days starting 15th Sep’25. Under this extension, both existing and new applicants are allowed to apply for the PLI. Applicants approved under the current round are eligible to receive PLI benefits for 1 year or 2 years based on the investment category they fall in.

* Reopening of window: The government has reopened the application window for the PLI Scheme for White Goods (ACs and LED lights) for 30 days starting 15th Sep’25. According to the ministry, both new applicants as well as existing beneficiaries of the PLI scheme are eligible to apply for the new reopened window. The objective of reopening of the scheme is based on the high demand as well as the high appetite of the industry to invest more under the scheme and increase manufacturing and sub-assembly capabilities.

* Diving deep into the scheme (Refer Exhibit 2): Applicants approved in the current round (that has now opened) will be eligible to receive PLI benefits for a maximum of 2 years if they are new applicants or existing beneficiaries under GP-2 (valid up to Mar’23) who want to move to a higher investment category. On the other hand, beneficiaries under GP-1 (valid up to Mar’22) who want to move to a higher investment category will be eligible for PLI benefits for 1 year. If existing beneficiaries cannot meet the required investment or sales targets in any year, they can claim benefits based on their original investment plan.

* What this means? Companies who want to scale up under PLI (i.e., invest more, manufacture more) now get a quicker route but with limited duration of incentive (1-2 years depending on their previous category) rather than full scheme duration. But if they don’t manage to hit the higher target, they are not fully penalised; they can still claim incentives under their older commitments. This reduces the risk for businesses trying to upgrade. But since the “upgrade flexibility” is allowed only once, the decision to move categories is strategic; beneficiaries will want to ensure they can meet higher thresholds or knowingly plan for a fallback.

* Scheme specifics: The White Goods PLI was approved in Apr’21 with an expected investment outlay of INR 62.4bn over FY21-22 to FY28-29. Till now, 83 applicants with committed investment of INR 104bn have been selected as beneficiaries under the scheme.

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