The Operation of Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing

The scheme "The Operation of Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing" has been launched by the Ministry of Electronics and Information Technology (MeitY), Government of India. The scheme provides financial incentives to eligible companies based on their incremental sales of goods manufactured in India over a defined base year. It is a performance-linked scheme where incentives are disbursed only after actual production and sales are achieved, rather than as upfront support. The scheme is applicable to identified sectors and products notified by the Government of India and requires companies to meet specified investment, production, and sales thresholds. A Project Management Agency (PMA) is responsible for handling applications, verification of claims, and monitoring implementation. The scheme also includes a structured approval mechanism involving designated authorities to ensure transparency and ensures that incentives are granted strictly based on verified incremental performance in manufacturing output.

1. The scheme provides financial incentives linked to incremental production and sales of manufactured goods in India, encouraging actual performance-based growth.
2. It promotes large-scale manufacturing investment in India, helping companies expand capacity and strengthen production facilities in targeted sectors.
3. The scheme helps in increasing domestic manufacturing output and value addition, thereby strengthening India’s industrial base.
4. It reduces dependence on imports by encouraging domestic production of goods within the target segments.
5. The scheme supports the development of a globally competitive manufacturing ecosystem in India, improving global integration.
6. It attracts domestic and foreign investment into identified manufacturing sectors, boosting economic growth.
7. It ensures a performance-based incentive structure, where benefits are provided only after actual achievement of production and sales targets.

1. The applicant should be a company engaged in manufacturing under the specified target segments and must meet the defined qualification criteria for eligibility under the scheme.
2. The applicant should have a consolidated global manufacturing revenue in the relevant target segment exceeding the prescribed threshold in the base year, including revenue of group companies as applicable.
3. The applicant should satisfy the minimum eligibility thresholds of incremental investment and incremental sales of manufactured goods over the base year as specified in the scheme guidelines.
4. The applicant should ensure that eligibility for incentive in any year is subject to meeting the required threshold criteria for that particular year under the scheme.
5. The applicant should acknowledge that failure to meet the threshold criteria in any given year will result in non-eligibility for incentive for that year, without affecting eligibility in subsequent years.
6. The applicant should ensure that incremental sales of manufactured goods over the base year are considered for determining eligibility, irrespective of invoice value thresholds.
7. The applicant should comply with the condition that only sales of manufactured goods under the target segments are considered for evaluation of eligibility.
8. The applicant should understand that eligibility under this scheme shall not impact eligibility under any other scheme, and vice versa.

Online

Step 1: Visit the official portal of the Scheme.
Step 2: Register on the portal using the company details.
Step 3: Access the application form available on the portal.
Step 4: Fill in all required details, including investment, production plans, and financial information.
Step 5: Upload all required documents as specified.
Step 6: Submit the application online within the prescribed timeline.
Step 7: The application will be evaluated by the Project Management Agency (PMA).
Step 8: Provide clarifications or additional documents, if requested during evaluation.
Step 9: Upon approval, receive the approval letter from the concerned authority.
Step 10: Commence production and submit claims for incentives on an annual basis.
Step 11: Claims will be verified by the Project Management Agency (PMA) and approved for disbursement.