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

What is the PLI Scheme for White Goods?

The Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) is a central sector scheme of the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry. According to DPIIT, the scheme was notified in April 2021 with a total outlay of Rs 6,238 crore and runs from FY 2021-22 to FY 2028-29.

The PLI Scheme for White Goods is aimed at the components and sub-assemblies of air conditioners and LED lights, not the finished appliances. India assembles large volumes of ACs and LED lights, but imports many of the parts inside them. The scheme rewards companies that make these components domestically, building a self-reliant component ecosystem.

Main objectives

• Create a robust domestic component ecosystem for ACs and LED lights.
• Reduce import dependence for key components and sub-assemblies.
• Make India an integral part of global supply chains for white goods.
• Attract investment and generate employment.

What does the PLI Scheme for White Goods cover?

The scheme incentivises manufacturing of components and sub-assemblies, not finished ACs or LED lights, per the DPIIT guidelines:

A company selects a target component segment and commits to a minimum investment and a threshold of incremental sales of the eligible components.

How much does the PLI Scheme for White Goods provide?

The scheme pays selected companies an incentive on incremental sales of eligible components over a base year, per the DPIIT guidelines. According to DPIIT, the incentive runs on a reducing basis from 6% down to 4% over five years, following the base year and a one-year gestation period. Incentives are subject to the company meeting the committed investment and incremental-sales thresholds for its chosen segment.

Who is eligible for the PLI Scheme for White Goods?

A company can apply if it:

• Is a company registered in India that makes, or commits to make, eligible AC or LED light components.
• Meets the net-worth and financial-capability criteria in the guidelines.
• Commits to the minimum cumulative investment and the incremental-sales thresholds for its chosen component segment.

You are not eligible if:

• You are an individual, student or job seeker seeking a personal grant. The PLI Scheme for White Goods is a company incentive scheme with no individual benefit.
• Your product is a finished AC or LED light rather than an eligible component.
• Your company cannot meet the minimum investment or incremental-sales thresholds.

Anyone offering personal "White Goods PLI registration" to individuals for a fee is running a scam. The scheme has no citizen application.

How to apply for the PLI Scheme for White Goods

The PLI Scheme for White Goods has no citizen application; the process is entirely for companies and was conducted online through DPIIT:

1. Register your company on the DPIIT White Goods PLI portal.
2. Identify the target component segment (AC or LED components) your company will manufacture.
3. Prepare the detailed project report, audited financials and proof of manufacturing capability.
4. Submit the online application with the required documents within the notified application round.
5. If selected, execute the agreement and claim incentives against verified incremental sales each year.

Note: the application rounds have closed and selected companies are in the implementation phase. Confirm the current status on the DPIIT portal before acting on any claim about a reopened window.

What are the application rounds and how are companies selected?

The PLI Scheme for White Goods has been opened for applications in successive rounds rather than a single window, and each round has its own selection list published by DPIIT.

• First and second rounds (2021 and 2022) selected the original set of beneficiaries across the two segments of AC components and LED light components.
• Third round. DPIIT selected 24 beneficiaries with a committed investment of Rs 3,516 crore in January 2025. That group included 18 new companies to 10 making AC components and 8 making LED light components — committing Rs 2,299 crore, plus 6 existing beneficiaries who moved up to a higher investment category with an extra Rs 1,217 crore.
• Fourth round. DPIIT extended the application window to 10 November 2025 and selected five more companies with a committed investment of Rs 863 crore in January 2026, focused on AC components.

According to DPIIT figures reported through PIB and government channels, the scheme had drawn in around 85 companies with committed investment of about Rs 11,198 crore and an expected production value near Rs 1,90,000 crore over the scheme period. Because these figures are revised as each round closes and projects are implemented, confirm the latest numbers on the DPIIT portal before relying on them.

Selection is not first-come. Each application is scored against the guidelines and referred, where needed, to a Committee of Experts before a company is provisionally selected. A selected company then executes an agreement, meets a one-year gestation period, and only afterwards begins claiming incentives against audited incremental sales.

How is an incentive claim verified and paid?

The PLI Scheme for White Goods pays nothing on the strength of an application alone. A selected company must first hit its committed cumulative investment milestone and then demonstrate incremental sales of eligible components over its base year. Claims are supported by audited financial statements and are checked by a Project Management Agency appointed by DPIIT before the incentive is released. If a company misses its investment or sales threshold in a given year, the incentive for that year is reduced or withheld, which is what makes the scheme performance-linked rather than a guaranteed subsidy.

This structure also explains the long tail of the scheme. Because the incentive runs for five years after the base year and gestation period, a company selected in a later round can continue to earn incentives well toward the scheme's outer limit of FY 2028-29.

The PLI Scheme for White Goods complements other manufacturing PLI schemes by deepening the component supply chain beneath finished consumer appliances, so that ACs and LED lights made in India increasingly use domestically made parts.

Why does the scheme target components, not finished ACs and LEDs?

The PLI Scheme for White Goods deliberately excludes finished air conditioners and LED lights. India already assembles these products in large volumes, but the components inside them; compressors, copper tubes, controllers, LED chips and drivers: are heavily imported. According to DPIIT, incentivising the components layer is what builds a self-reliant ecosystem: without domestic component manufacturing, assembly alone leaves the industry dependent on imports and adds little value in India. This is why a company applying for a finished AC or LED light is not eligible, while one making the parts is.

How does the PLI Scheme for White Goods differ from a subsidy?

The PLI Scheme for White Goods is a performance-linked incentive, not an upfront grant. Three features set it apart:

• Paid on incremental sales. A company earns the 4% to 6% incentive only on the increase in sales of eligible components over its base year.
• Reducing rate. The incentive tapers from 6% down to 4% across the five years, encouraging companies to scale quickly.
• Investment gated. A company must meet its committed cumulative investment and incremental-sales thresholds for its component segment each year.

Help and where to verify details

There is no citizen helpline for the PLI Scheme for White Goods because it has no individual application. Companies raise queries through the DPIIT White Goods PLI portal. The scheme guidelines, eligible component lists and the list of selected companies are published on the DPIIT website and in PIB releases.

Treat any offer of personal "white goods PLI registration", any demand for a fee to "add your name", or any request for OTPs or bank details in the scheme's name as a scam. The scheme deals only with registered companies, never with individual beneficiaries.