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Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)

PLIWG

Published: Oct 2026

6 min read

Reviewed by Navin, Editor · First published: 7 Oct 2026

Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights)
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Written by Navin · Editor, tsmpb.inUpdated: 17 Oct 2026 · How we verify scheme facts

About this business scheme

The scheme targets manufacturers of components / sub-assemblies of Air Conditioners & LED Lights and offers 4โ€“6% incentive on incremental sales to boost localization, reduce imports, and build a domestic supply chain.

The scheme targets manufacturers of components / sub-assemblies of Air Conditioners & LED Lights and offers 4โ€“6% incentive on incremental sales to boost localization, reduce imports, and build a domestic supply chain.

Objective & Scope

The objective is to boost domestic manufacturing, reduce import dependence, build a strong component ecosystem for white goods, and position India in the global supply chain.

The scheme targets companies that invest in manufacturing components or sub-assemblies for:

  • Air Conditioners (ACs) โ€” e.g. compressors, copper tubes, heat exchangers, motors, control assemblies, etc.
  • LED Lights โ€” e.g. LED chips & packaging, LED drivers, LED engines, light-management systems, and other components in the LED-light value chain.

Implementation Period & Financial Outlay

  • The scheme runs from FY 2021-22 to FY 2028-29
  • Total approved outlay is Rs. 6,238 crore.
  • Incentives under the scheme are provided for a period of 5 years on incremental sales (after one / two year gestation period), over the base year.

Benefits at a glance

Scheme nameProduction Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) (PLIWG)
Launched byMinistry Of Commerce And Industry
DepartmentDepartment For Promotion Of Industry And Internal Trade
Launch year2021
Benefit typeCash (money paid to your bank account)
CategoryBusiness
Level / StateCentral ยท All India
Official portalpliwg.dpiit.gov.in (link at the end of this page)

Key facts

Scheme typeCentral Sector Scheme
Scheme forIndividual
Application modeOnline
Last dateOngoing (no last date notified)
DBT (direct bank transfer)No
AgeNo lower limit to 80 years

Who can apply (quick check)

  • ๐Ÿ‘คAll genders
  • ๐ŸŽ‚Age 0 to 80 years
  • ๐Ÿ“Online

Quick check from official data. Full conditions are in the Eligibility section.

What you receive

  1. Eligible companies get financial incentives ranging from 4% to 6% โ€” on net incremental sales of goods manufactured in India under the scheme.
  2. The goal is to significantly raise domestic value addition โ€” from existing ~15โ€“20% to ~75โ€“80%.
  3. Large incremental production and exports of AC & LED components.
  4. Creation of substantial employment (direct + indirect) across manufacturing ecosystem.
  5. Development of a complete โ€œcomponent-to-final-productโ€ ecosystem, reducing dependence on imports.

Who qualifies

  1. Incentive under the Scheme shall be provided to Companies making brown field or green field Investments for manufacturing in target segments in India.
  2. Eligibility shall be subject to achievement of thresholds of net incremental sales of Eligible Products for the respective financial year over the base year or net incremental sales of eligible products over the base year or FY 2020-21, whichever is higher, as the case may be and cumulative incremental investment in the preceding financial year, which shall not be less than the threshold investment as detailed in Appendix-I or Appendix IA of the Scheme Guidelines, as the case may be.
  3. In case an applicant does not meet criteria of threshold investment and threshold net incremental sales for any given year, the applicant shall not be eligible for disbursement of incentive for that particular financial year. However, the applicant will not be restricted from claiming incentive for subsequent years during the tenure of the Scheme, provided eligibility criteria of cumulative committed investment and threshold net incremental sales are met for such subsequent financial years.
  4. The incremental sales of eligible products should be commensurate with created production capacity from investments committed under the scheme.
  5. For the purpose of determining eligibility of an applicant with respect to incremental investment, the investment covered under any other PLI Scheme of Govt. of India of the Applicant shall not be considered for determining eligibility under this PLI Scheme and vice-versa.
  6. In every financial year for which the incentive is claimed, the net sales turnover of eligible products of the selected applicant and its group companies shall not be less than the sum of their net sales turnover of eligible products manufactured in India in the base year for applicants meeting the pre-qualification criteria on the basis of financial attributes of base year and higher of net sales turnover of eligible products in the base year or FY 2020-21, for applicants meeting the pre-qualification criteria on the basis of financial attributes of FY 2020-21; along with the corresponding threshold incremental net sales turnover of the selected applicant as detailed in Appendix-1 or Appendix-IA of the Scheme Guidelines, as the case may be.
  7. For applicants opting for initial investment period as 1st April, 2021 to 31st March, 2023, the first and last year of achieving the required corresponding threshold incremental sales for availing the PLI shall be FY 2023-2024 and FY 2027-28 respectively as detailed in Appendix -IA of the Scheme Guidelines.

Who is not eligible

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Registration walkthrough

Online

Step 01: Visit the official website of the Department for Promotion of Industry and Internal Trade (DPIIT) and register on the PLI-WG Online Portal.

Step 02: Complete the online application form, upload all necessary documents, and pay the application fee.

Step 03: Your application will be reviewed, and approval will be granted by the competent authority if all requirements are met.

Step 04: After approval, follow all required compliance procedures and guidelines to maintain eligibility.

Important dates

Launch / start16 Apr 2021

Frequently asked questions

What financial benefit does the PLI Scheme for White Goods provide

It offers 4%โ€“6% incentive on net incremental sales of eligible products over the base year for 5 years.

How does the scheme support domestic manufacturing?

It encourages investment in new manufacturing facilities for AC and LED components, boosting localization and reducing imports.

Can companies benefit from economies of scale?

Yes. Up to 40% of incremental sales of eligible products may be to sectors outside AC/LED, enabling economies of scale.

Does the scheme support component-level expansion?

Yes. Companies can invest in multiple eligible components within a target segment; backward integration investments are also eligible.

Is captive consumption eligible for incentive?

Yes. Captive consumption counts as net sales turnover if at least 60% goes into AC/LED manufacturing.

When are incentives disbursed?

Incentives are disbursed the year after meeting both investment and sales thresholds, provided that the requisite conditions are met

Who can apply under the PLI White Goods Scheme?

Only companies incorporated in India under the Companies Act (2013 or 1956). LLPs cannot apply.

What are the pre-qualification financial criteria?

Minimum Gross Block, Global Revenue, and Net Worth thresholds must be met for each target segment.

Is an applicant allowed if it benefits from another PLI scheme for the same products?

No. Double benefits for the same product across PLI schemes are not allowed

Where is the application submitted?

Applications must be submitted online via the PLI-WG portal.

What is the application window?

The scheme opens applications for specified windows; initial was 15 Juneโ€“15 Sept 2021 with possible later rounds.

What is the application fee and payment mode?

Rs. 1,00,000 to be paid online

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