PLI Scheme for White Goods — 4-6% Incentive for AC & LED Component Makers

The PLI Scheme for White Goods is an incentive programme from the Ministry of Commerce and Industry, Government of India, created to build a domestic component base for Air Conditioners and LED Lights. Rather than funding a business at launch, it rewards manufacturers for producing more in India: participants earn between 4% and 6% on net incremental sales of eligible goods made locally.

The scheme responds to a specific supply-chain gap. India assembles ACs and LED lights at scale but has leaned heavily on imported parts. So the programme names the components it wants manufactured here — for air conditioners, compressors, copper tubes, heat exchangers, motors and control assemblies; for LED lights, LED chips and packaging, drivers and light-management systems.

The measurable ambition is domestic value addition, targeted to rise from roughly 15-20% to 75-80%. The scheme carries a total outlay of ₹6,238 crore and runs from FY 2021-22 through FY 2028-29. Both brownfield expansions and greenfield plants qualify, so established manufacturers and new entrants can take part.

It is a long-horizon commitment rather than a one-time payout, and the incentive is linked to actual performance — investment made, sales achieved and thresholds crossed.

• 4-6% incentive on net incremental sales of eligible AC and LED components made in India
• Total scheme outlay of ₹6,238 crore
• Operational from FY 2021-22 to FY 2028-29, with incentives paid over five years
• Open to both brownfield and greenfield manufacturing investments
• Covers parts such as compressors, copper tubes, heat exchangers, motors, LED chips, drivers and light-management systems
• Aims to lift domestic value addition from about 15-20% to 75-80%

The scheme is aimed at companies, not individual founders, and eligibility is performance-linked rather than open-ended.

• Applicants must be investing in manufacturing in India — either a brownfield expansion or a greenfield facility — in the target AC and LED component segments.
• Eligibility depends on achieving set thresholds for net incremental sales of eligible products, measured over a base year with FY 2020-21 used as the comparison point.
• Applicants must additionally satisfy cumulative incremental investment criteria laid out in the Scheme Guidelines.
• Specific timelines apply for reaching threshold incremental sales; for certain applicants this window runs from FY 2023-24 to FY 2027-28.
• Investment already counted under any other PLI scheme cannot be used to establish eligibility under this one.
• If the investment and sales thresholds are not met in a given year, no incentive is disbursed for that year — but the participant is not barred from claiming in subsequent years if the criteria are met then.

PLI Scheme for White Goods — 4-6% Incentive for AC & LED Component Makers is open to startups at any stage. It is open to startups registered anywhere in India.

PLI Scheme for White Goods — 4-6% Incentive for AC & LED Component Makers accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The headline benefit is a cash incentive of 4% to 6% on net incremental sales of eligible goods manufactured in India. This is not a fixed upfront grant — the payout tracks actual incremental sales, so the reward grows with production volume.

Beyond the money, the scheme is expected to deliver wider structural gains:

• Higher domestic value addition in AC and LED components
• Lower import dependency for critical parts
• Larger incremental production and exports of these components
• An ecosystem that stretches from components through to finished products inside India
• Direct and indirect employment across the manufacturing value chain, and deeper integration into global supply chains

PLI Scheme for White Goods — 4-6% Incentive for AC & LED Component Makers is offered by Ministry of Commerce and Industry, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are assessed by a designated committee — expected to draw experts from the Ministry of Commerce and Industry and related bodies — rather than being cleared on a first-come basis.

The evaluation centres on the applicant's proposed investment, projected incremental sales, and its capacity to contribute to domestic value addition in AC and LED component manufacturing. Compliance with the scheme's financial and operational thresholds is a decisive factor.

Shortlisting may involve more than one round of assessment, after which the most promising and compliant proposals go forward for approval by the competent authority. The intent is to select manufacturers genuinely able to advance the scheme's objectives.

Once approved, participants must follow the stipulated compliance procedures for the entire tenure of the scheme, including regular reporting on production, sales and investments, to remain eligible for disbursements.

Before you apply to PLI Scheme for White Goods — 4-6% Incentive for AC & LED Component Makers, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.