On the basis of various requests/ suggestions received from Production Linked Incentive Scheme for White Goods Beneficiaries as well as Industry Associations, further changes in the Scheme Guidelines have been made, with a view to simplify the operation of the Scheme as well as to improve the ease of doing business. 

The following changes have been incorporated under Scheme Guidelines of PLI Scheme for White Goods (ACs and LED Lights):

a. Adoption of Cost-Plus method in place of CUP (comparable uncontrolled price) method for calculation of sales prices in case of captive consumption or supplies to group companies. It also required amendment in the definition of ‘Arm’ length’;

b. Consider investments in Tool room for manufacturing of Mould & Dies etc. as eligible investment under Capital Investment;

c. Allowing one more year over and above two years, permitted for informing by beneficiaries about establishment of additional manufacturing facility;

d. Revision of last date of submission of filing the claim and refund of excess incentive by the beneficiary on account of discrepancy between statutory compliance and records provided at the time of filing of claim(s), if any;

e. Site visit by Administrative Ministry;

f. Roll over of Bank Guarantee;

g. Appropriate changes in Annexures to the Scheme Guidelines

In pursuance of Prime Minister’s clarion call for “Atmanirbhar Bharat” to bring manufacturing at the center stage and emphasize its significance in driving India’s growth and creating jobs, PLI Scheme for White Goods for manufacture of components and sub-assemblies of ACs and LED Lights was approved by the Union Cabinet chaired by the Prime Minister on 7th April, 2021. The scheme is to be implemented over a seven years period, from FY 2021-22 to FY 2028-29 and has an outlay of ₹ 6,238 crore. The scheme was notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on 16th April, 2021. The scheme guidelines were published on 4th June, 2021. Based on further stakeholder consultations for smooth implementation of the scheme, two corrigenda to the Scheme Guidelines were issued on 16th August, 2021 and 24th February, 2022 respectively.

The scheme is operational now. Out of 64 selected beneficiaries, 15 beneficiaries, who have opted for the gestation period up to 31st March, 2022, have started commercial production. Rest of the beneficiaries who have opted for Gestation period upto 31st March, 2023 are at different stages of implementation.

The PLI Scheme for White Goods is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. Domestic Value addition is expected to grow from the current 15-20% to 75-80%.

Corrigendum to the Scheme Guidelines may be seen at:

https://dpiit.gov.in/sites/default/files/Corrigendum_PLIGuidelines_10October2023.pdf

Cost-Plus pricing adoption replaces CUP for captive and intra-group supplies, altering arm's length pricing and investment eligibility. The PLI Scheme for White Goods amends operational rules: adopts the Cost-Plus method for captive and intra-group pricing with a revised arm's length definition; treats tool rooms for moulds and dies as eligible capital investment; extends the notification period by one year for additional manufacturing facilities; revises claim submission and excess incentive refund timelines where statutory compliance discrepancies arise; and provides for administrative site visits, bank guarantee rollover, and updates to scheme annexures to streamline implementation and compliance.