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News In Brief Business and Economy

Commerce Ministry Clears 5 Companies Under PLI White Goods Scheme

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Commerce Ministry Clears 5 Companies Under PLI White Goods Scheme
27 Jan 2026
3 min read

News Synopsis

The Ministry of Commerce and Industry has announced the provisional selection of five companies under the fourth round of the Production-Linked Incentive (PLI) Scheme for White Goods. The decision follows the evaluation of 13 applications received during the latest round of the scheme.

According to the ministry, the selected companies have committed a total investment of ₹863 crore and are all involved in the manufacturing of air conditioner (AC) components.

Companies Selected in PLI White Goods Round 4

List of Provisionally Selected Firms

The five companies approved under the latest round are:

  • Kirloskar Pneumatic

  • Indo-Asia Copper

  • Godrej & Boyce Manufacturing

  • Kryon Technology

  • Pranav Vikas (India)

These firms are expected to play a key role in strengthening India’s domestic AC component manufacturing ecosystem.

Investment, Production and Job Creation Targets

Expected Economic Impact by FY 2027–28

According to the Commerce Ministry, the five selected companies are projected to:

  • Generate total production of ₹8,337.24 crore

  • Create 1,799 additional direct jobs

  • Strengthen local supply chains for AC manufacturing

The outcomes are expected to be achieved by FY 2027–28, aligning with the scheme’s long-term objectives.

PLI White Goods Scheme: Overall Progress So Far

Cumulative Impact Across All Rounds

With the latest selections, a total of 85 companies have now been approved under the PLI Scheme for White Goods, covering both air conditioners and LED lights.

As per the ministry:

  • Total committed investment: ₹11,198 crore

  • Expected cumulative production: ₹1,90,050 crore over the scheme period

Meanwhile, eight applicants from the fourth round have been referred to the Committee of Experts (CoE) for detailed evaluation and recommendations.

What Will Be Manufactured Under the Scheme?

Air Conditioner Components

Under the PLI White Goods scheme, approved AC manufacturers will produce:

  • Compressors

  • Copper tubes

  • Control assemblies for indoor and outdoor units

  • Heat exchangers

  • BLDC motors

LED Lighting Components

For LED lights, domestic manufacturing will focus on:

  • LED chip packaging

  • LED drivers

  • LED engines

  • Light management systems

  • Metallised films for capacitors

PLI White Goods Scheme: Policy Background

Cabinet Approval and Timeline

The Union Cabinet approved the PLI Scheme for White Goods (Air Conditioners and LED Lights) on April 7, 2021, with a total financial outlay of ₹6,238 crore.

The scheme:

  • Is implemented from FY 2021–22 to FY 2028–29

  • Was officially notified by DPIIT on April 16, 2021

Incentives and Long-Term Objectives

Incentive Structure

The PLI White Goods scheme offers:

  • Incentives ranging from 6% to 4%

  • Applicable on incremental sales

  • For a period of five years, after a one-year gestation period

Domestic Value Addition Goals

The scheme aims to:

  • Increase domestic value addition from 20–25% currently

  • To 75–80% over the long term

  • Position India as a key global manufacturing hub for white goods components

Why This Matters for India’s Manufacturing Push

The PLI White Goods scheme is a critical pillar of the Make in India initiative, targeting:

  • Reduced import dependence

  • Stronger component ecosystems

  • Higher employment generation

  • Greater participation in global supply chains

With fresh approvals under the fourth round, the government continues to accelerate momentum in India’s white goods manufacturing sector.

TWN Special