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

Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) offers a cash incentive of 4% to 6% on incremental sales to manufacturers of AC and LED components in India. Central Government approved the scheme in April 2021 with a total outlay of ₹6,238 crore, and it is valid from FY 2021-22 to FY 2028-29. As of August 2026, more than 85 companies have been selected with committed investment of about ₹11,198 crore, and incentives are already reaching approved manufacturers.

Scheme helps companies set up or expand manufacturing lines for core components of air conditioners and LED lights. It cuts import reliance, creates direct jobs, and builds a complete component-to-product ecosystem in India while supporting exports of white goods.

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

Union Cabinet approved the PLI White Goods scheme on 7 April 2021 and the Department for Promotion of Industry and Internal Trade (DPIIT) notified it on 16 April 2021. The main aim is to attract large investments in the white goods value chain and encourage domestic manufacturing of components and sub-assemblies of air conditioners and LED lights. Selected companies get a performance-linked cash incentive on net incremental sales for five years after the base year and a gestation period of one to two years.

Scheme focuses on companies investing in manufacturing key components for the following areas:

Implementation Details:

Scheme is valid from FY 2021-22 to FY 2028-29 with a total approved outlay of ₹6,238 crore. Selected manufacturers can claim incentives for up to five years based on incremental sales achieved after the gestation period. As of August 2026, 85 companies have been selected under the scheme with combined committed investment of about ₹11,198 crore and expected cumulative production of over ₹1,90,050 crore during the scheme period.

Key Information

Benefits

Eligible manufacturers get several clear advantages under this scheme:

• Direct Financial Support: Incentive of 4% to 6% on net incremental sales of eligible items manufactured in India for up to five years.
• Value Addition: Domestic value addition is expected to rise from the current 20% to 25% level to 75% to 80%.
• Market Growth: Companies can use large-scale production and export opportunities for AC and LED components.
• Employment Generation: The five companies approved in Round IV alone are expected to create 1,799 additional direct jobs by FY 2027-28.
• Supply Chain Stability: A complete component-to-final-product ecosystem makes India more self-reliant and keeps the supply chain stable.

Eligibility

To qualify for the incentive, a business must meet the following criteria:

• Company Type: Applicant must be a company incorporated in India under the Companies Act 2013 or 1956. Limited Liability Partnerships (LLPs) are not eligible.
• Investment: Company should make greenfield or brownfield investments in the target manufacturing segments.
• Sales Targets: Company must meet the specific investment thresholds and net incremental sales targets given in the official scheme guidelines.
• Production Capacity: Incremental sales must match the production capacity created by the planned investments.
• No Double Benefit: Incentives for the same product cannot be combined under different government PLI schemes.
• Audit Compliance: Annual turnover audits confirm the sales growth needed to claim disbursed funds for any financial year.

Application Process

Companies apply online through the official PLI-WG portal managed by IFCI Limited, which acts as the Project Management Agency for the scheme. The fourth round application window reopened on 15 September 2025 and stayed open until 10 November 2025 after an extension. Applicants approved in later rounds get incentives only for the remaining tenure of the scheme. Use these steps to apply:

STEP 1 - Check the business eligibility against the official scheme guidelines and choose the right target segment and investment category.

STEP 2 - Collect the financial documents, investment project report, and audited balance sheets needed for the application.

STEP 3 - Register the company on the official PLI-WG online portal at pliwhitegoods.ifciltd.com and create a login.

STEP 4 - Fill the detailed application form with accurate data about investment, production capacity, and sales projections.

STEP 5 - Upload all supporting documents and self-declarations on the portal.

STEP 6 - Pay the application fee of ₹1,00,000 through the online payment gateway.

STEP 7 - Submit the application and wait for evaluation by the Project Management Agency.

STEP 8 - After approval, keep meeting the investment and sales thresholds to receive incentives on time.

Documents

Applicants should keep the following documents ready before applying. Consolidated scheme guidelines on the official portal give complete details about audits, project reports, and balance sheets.

• Certificate of incorporation and other company registration documents.
• Detailed project report with investment plan and timeline.
• Audited balance sheets and financial statements for recent years.
• Base year sales data and incremental sales projections.
• Self-declaration confirming eligibility and no double benefit under another PLI scheme.

News and Latest Update

In January 2026, the government approved five companies in the fourth round of the PLI White Goods scheme with a committed investment of ₹863 crore. These companies mainly make AC components such as compressors, copper tubes, heat exchangers, motors, and control assemblies. They are expected to achieve total production of ₹8,337.24 crore and create 1,799 additional direct jobs by FY 2027-28.

Before this, the government reopened the application window for the fourth round for 30 days from 15 September 2025 to 14 October 2025 on the same terms as the original scheme, and later extended it to 10 November 2025. As of August 2026, no fresh application window is open. Any new window will be announced on the official portal and through PIB press releases.

Similar production linked incentive schemes cover other sectors such as large scale electronics manufacturing and pharmaceuticals.

References

Official PLI-WG Online Portal | Consolidated Scheme Guidelines | PIB Press Release on Reopening of Applications

FAQ's

What financial benefit does the PLI Scheme for White Goods provide?

Eligible manufacturers receive an incentive of 4% to 6% on net incremental sales of qualified products over the base year for a period of five years.

Is the scheme still open for fresh applications in 2026?

The fourth round application window closed on 10 November 2025 and five companies were approved in January 2026. Future windows may open based on industry interest, and announcements will be made on the official PLI-WG portal and PIB.

How does the scheme support domestic manufacturing?

The scheme incentivizes companies to invest in new or expanded manufacturing facilities for AC and LED components, which helps localize production and lowers import reliance.

Can companies benefit from economies of scale?

Yes. A company may allocate up to 40% of incremental sales to sectors outside of AC/LED, which helps achieve better economies of scale.

Does the scheme support component-level expansion?

Yes. Companies can invest in multiple eligible components within a target segment, and investments in backward integration also qualify.

Is captive consumption eligible for incentive?

Yes. Captive consumption counts as net sales turnover provided at least 60% of it feeds into the AC/LED manufacturing process.

When are incentives disbursed?

Government disburses incentives the year after the company successfully meets both the investment and sales thresholds.

Who can apply under the PLI White Goods Scheme?

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

What are the pre-qualification financial criteria?

Applicants must fulfil specific thresholds regarding Gross Block, Global Revenue, and Net Worth for their target segment.

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

No. Applicants cannot claim double benefits for the same product across different PLI schemes.

Where is the application submitted?

Applications are submitted online through the official PLI-WG portal managed by IFCI Limited at pliwhitegoods.ifciltd.com.

What is the application fee and payment mode?

An application fee of ₹1,00,000 has to be paid through the online portal.