Union Cabinet: PLI Scheme for Air Conditioners and LED Lights approved

The Union Cabinet recently approved the Production Linked Scheme for White Goods such as Air conditioners and LED lights. The main objective of the scheme is to make manufacturing in India globally competitive. This is to be achieved by creating economies of scale, removing sectoral disabilities and ensuring efficiencies. The scheme will make India an integral part of the global supply chain.

It is expected that the scheme will attract global investment, enhance exports and generate large scale employment.

PLI Scheme for White Goods

  • The budget allocated for the scheme is Rs 6,238 crores. The amount has been approved by the cabinet.
  • The scheme will help to facilitate additional investments of Rs 7,920 crores.
  • It will create four lakh jobs.
  • The scheme will generate direct and indirect revenues of Rs 49,300 crores.
  • The scheme will provide incentive of 4% to 6% to the companies engaged in the manufacturing of Air Conditioners and LED lights.
  • The incentives are to be provided for a period of five years.
  • The scheme is expected to increase production worth Rs 1,68,000 crores and exports worth Rs 64,000 crores.

What are White Goods?

Generally large home appliances such as refrigerators, dish washers, washing machines, air conditioners are referred to as white goods. Traditionally the household goods were available in white colour and hence the name.

What are brown goods?

The Consumer Electronics such as computer, Television, games consoles, radios are referred to as brown goods.

Other Schemes approved

Along with the PLI Scheme for Air Conditioners and LED lights, the PLI Scheme for high efficiency Solar PV module called the “National Programme on High Efficiency Solar PV Modules” was also approved.


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