Incentive Scheme – White Goods

PLI Scheme for White Goods – From 01.04.2021 – for 7 years

2021-22                         Investment Period

2022-23 onwards       Incentive for 5 years

OR

2021-23                         Investment Period

2023-24 onwards       Incentive for 5 years

  • To boost domestic manufacturing and large investments
  • To remove sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation
  • ₹6,238 Crores outlay is targeted under this scheme
  • Investment period 2021-22 (disbursement starts from FY 2023-24)

 

Year

Components of

Air Conditioners

Components of

LED Lights

2022-23

6%

6%

2023-24

6%

6%

2024-25

5%

5%

2025-26

5%

5%

2026-27

4%

4%

2027-28

 

 

 

The incentive is given

  • If minimum incremental sale target is achieved (First year: 2022-23), and
  • Cumulative incremental investment in plant and machinery is made (First year: 2021-22).
  • First disbursement would be in 2023-24 and last disbursement would be in FY 2027-28.
  • There are slabs of PLI for each year.
  • These incentive rates are independent for every tax period. In case target is not met for any tax period, incentive would not be given only for that period.

 

  • Investment period 2021-23 (disbursement starts from FY 2024-25)

 

Year

Components of

Air Conditioners

Components of

LED Lights

2022-23

 

 

2023-24

6%

6%

2024-25

6%

6%

2025-26

5%

5%

2026-27

5%

5%

2027-28

4%

4%

Air Conditioners

LED Lights

High Value Intermediates or

Sub-assemblies, or

Combination thereof

 

 

 

 

Air Conditioners

Core Components like

  • LED Chip Packaging
  • Resisters
  • Integrated Circuits
  • Fuses
  • Large scale investment in other components

LED Lighting Products

Copper Tubes (plain and/or grooved)

Aluminium stock for Foils or Fins for heat eachangers

Compressors including oil free and high capacity

 

 

 

 

 

High Value Intermediates

Components of LED Lighting Products

  • LED Chips
  • LED Drivers
  • LED Engines
  • Mechanicals
  • Packaging Modules
  • Wire wound inductors
  • Other components
  • LED Modules
  • Printed Circuit Boards (PCBs)
  • Drum Cores
  • Heat Skins
  • Diffusers
  • Ferrite Cores
  • LED Light Management Systems (LMS)

 

 

PCB Assembly for controllers

BLDC Motors

Service Valves

Cross Flow fans for AC

Other components

  • Control Assemblies for IDU or ODU or Remotes
  • Display Panels (LCD/LED)
  • Motors
  • Cross Flow Fans (CFF)
  • Valves & Brass components
  • Heat Exchangers
  • Sheet Metal Components
  • Plastic Moulding components

 

Low Value Intermediates

 

 

 

  • The minimum amount of (i) Gross Block, (ii) Global Revenue and (iii) Net Worth of the applicant and its group companies (Indian or overseas) as on 31.03.2020 shall be as under:

S.No.

Target Segment

Large Investments

Normal Investments

Gross Block

Global Revenue

Net Worth

Gross Block

Global Revenue

Net Worth

1

AC (Components)

300

1500

180

150

600

90

2

AC (High Value Intermediates)

200

1000

120

125

500

75

3

AC (Low Value Intermediates)

50

250

30

25

100

15

4

LED (Core Components)

150

750

90

50

200

30

5

LED  (Components)

12

60

7.50

5

20

3
  • Government of India, on the recommendations of the Committee of Experts, may relax pre-qualification criteria specified above.
  • Mere assembly of finished goods shall not be incentivised.
  • Manufacturing of components or sub-assemblies which are not manufactured in India presently is to be incentivised.
  • Investment to be made on or after 01.04.2021.
    • Date of capitalization of the investment in the audited financial statements would be considered as date of investment
    • Cost not included
      1. Land and Building
      2. Consumables and raw material used for manufacturing
      3. Second hand/ used/ refurbished plant, machinery, equipment, utilities shall not be used manufacture the eligible product.
    • Cost included
      1. Plant, machinery, equipment and associated utility
      2. Research & Development
      3. Transfer of Technology Agreements
      4. Fresh investment in associated utilities
  • Investment details are to be certified by statutory auditor
  • Schedule of investment and incremental Sales

 

Air Conditioners (Investment period 2021-22)

Year

ACs Components

High Value Intermediates of ACs

Lower Value Intermediates of ACs

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

 

I

S

I

S

I

S

I

S

I

S

I

S

2021-22

150

 

50

 

50

 

50

 

20

 

10

 

2022-23

300

750

100

250

125

250

100

250

40

100

20

50

2023-24

400

1500

150

500

200

625

150

500

60

200

30

100

2024-25

500

2000

225

750

300

1000

200

750

80

300

40

150

2025-26

600

2500

300

1125

400

1500

250

1000

100

400

50

200

2026-27

 

3000

 

1500

 

2000

 

1250

 

500

 

250

 

Air Conditioners (Investment period 2021-23)

Year

ACs Components

High Value Intermediates of ACs

Lower Value Intermediates of ACs

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

 

I

S

I

S

I

S

I

S

I

S

I

S

2021-22

 

 

 

 

 

 

 

 

 

 

 

 

2022-23

150

 

50

 

50

 

50

 

20

 

10

 

2023-24

300

750

100

250

125

250

100

250

40

100

20

50

2024-25

400

1500

150

500

200

625

150

500

60

200

30

100

2025-26

500

2000

225

750

300

1000

200

750

80

300

40

150

2026-27

600

2500

300

1125

400

1500

250

1000

100

400

50

200

2027-28

 

3000

 

1500

 

2000

 

1250

 

500

 

250

LED Lights (Investment period 2021-22)

Year

Core Components

Components of LED Lighting System

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

 

I

S

I

S

I

S

I

S

2021-22

100

 

20

 

5

 

2

 

2022-23

150

600

40

120

10

30

4

12

2023-24

200

900

60

240

15

60

6

24

2024-25

250

1200

80

360

20

90

8

36

2025-26

300

1500

100

480

25

120

10

48

2026-27

 

1800

 

600

 

150

 

60

LED Lights (Investment period 2021-23)

Year

Core Components

Components of LED Lighting System

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

Cumulative Investment and incremental sales (in Crores) – LARGE

Cumulative Investment and incremental sales (in Crores) – Normal

 

I

S

I

S

I

S

I

S

2021-22

 

 

 

 

 

 

 

 

2022-23

100

 

20

 

5

 

2

 

2023-24

150

600

40

120

10

30

4

12

2024-25

200

900

60

240

15

60

6

24

2025-26

250

1200

80

360

20

90

8

36

2026-27

300

1500

100

480

25

120

10

48

2027-28

 

1800

 

600

 

150

 

60
  • Submit application to Project Management Agency (PMA) through portal https://pliwhitegoods.ifciltd.com/   
  • Non-refundable application fee of ₹1,00,000 to be paid electronically on application portal.
  • Open for application for a period of 6 months which may be extended. As of now, application window is open for period from 15th June 2021 to 15th September 2021 (inclusive)
  • PMA acknowledges and approves the application; makes recommendation to DPIIT. Selected applicant is finalised within a period of 60 days from last date.
  • PMA will issue communication within 5 working days  to applicants.
  • Within 2 weeks of such communication, applicants has to submit a bank guarantee along with undertaking for an amount equivalent to 0.5% of the committed investment in favour of Department for Promotion of Industry and Internal Trade (DPIIT), valid for 18 months.
  • Certificates from Statutory Auditor:
      1. Investment relating to plant & machinery
      2. Investment relating to Transfer of Technology Agreements
      3. Cost of technology, Intellectual Property Rights (IPRs), patents and copyrights along with purchase agreements
      4. Investment related to associated utilities
  • Certificates from Chartered Engineer, empanelled with PMA:
      1. Confirming utilisation of P&M and Equipment for manufacturing of eligible product(s) under target segment for each financial year
      2. Committed Investment – after carrying out the physical inspection of the manufacturing facilities
  • Self-certified quarterly review reports (QRRs) in specified format within 30 days from the end of each quarter.
  • Undertakings
      1. Integrity compliance
      2. Consent for Audit
      3. Refund of incentive

PLI Scheme for White Goods

Production Linked Incentive Scheme, 2021

CA Kashish Gupta, Managing Partner, Paksh Legal

[email protected]; 85108-06440

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