The Indian government has reopened the applications for the Production-Linked Incentive (PLI) scheme that seeks to incentivise the production of white goods including ACs and LED lights, for another 90 days.
It is a strategic move to increase local production and leverage on an expanding field. Some major players such as Voltas, Daikin, Blue Star, and Dixon Technologies belonging to the initial phase of this scheme are considering new applications under this scheme.
The PLI for the White Goods (PLIWG) which is expected to cost Rs 6,238 crore over seven years until FY 29 will now process claims quarterly instead of annually. The application period runs from July 15 to October 12, so it is open to both new clients and those who are already receiving subsidies but want to expand the amount of investment or target market.
Some of the benefits under the scheme are dependent on investment periods and sales targets and volumes; the government wants to increase local content from the current estimated 15-20 per cent in FY2022 to between 75-80 per cent in FY2029.
This scheme works towards building up indigenous manufacturing capacity to minimise import reliance, in sync with India Inc.’s objectives.
