Step 1: Identify the Correct PLI Scheme for Your Sector
Each sector has:
- Different incentive rates
- Eligibility conditions
- Investment thresholds
- Application deadlines
Choose the scheme that aligns with your business.
✔ Step 2: Review Scheme Guidelines & Eligibility Criteria
Eligibility may depend on:
- Minimum investment
- Domestic value addition
- Net worth of the company
- Production capacity
- Incremental sales commitments
Ensure that your business meets all criteria before applying.
✔ Step 3: Prepare a Detailed Project Report (DPR)
Your DPR must include:
- Company background
- Business plan
- Production & sales forecasts
- Investment layout
- Employment generation plan
- Supply chain strategy
- Expected PLI benefits
This is a crucial step for approval.
✔ Step 4: Register on the Respective Ministry’s PLI Portal
PLI applications are filed through:
- DPIIT portal (for industrial sectors)
- Ministry of Electronics & IT portal
- Ministry of Textiles portal
- Ministry of Food Processing portal
Each scheme has a specific registration platform.
✔ Step 5: Submit Online Application With Documents
Upload:
- DPR
- Certificates & Declarations
- Financial documents
- Investment details
- Company KYC and bank details
Ensure accuracy to avoid rejection.
✔ Step 6: Verification by PMA (Project Management Agency)
The government appoints a PMA to review applications. PMA will:
- Verify financial eligibility
- Review investment commitments
- Assess capability to achieve production targets
- Approve or recommend modifications
Several queries may be raised during this stage.
✔ Step 7: Receive Approval Letter from the Government
Once approved, your company is officially enrolled in the PLI scheme.
This letter includes:
- Investment milestones
- Production targets
- Incentive calculation method
- Claim submission rules
✔ Step 8: Make Investments as Committed
Companies must:
- Purchase machinery
- Set up manufacturing units
- Meet investment thresholds within the given timeline
Proof of investment is mandatory for incentive claims.
✔ Step 9: Begin Production & Achieve Target Sales
Incentives are linked to:
- Incremental production
- Incremental sales revenue
- Domestic value addition
Track performance closely.
✔ Step 10: File Annual Incentive Claims
Submit claims through the PLI portal with:
- Audited sales data
- Certificate from statutory auditor
- Production reports
- Value addition documents
The PMA verifies and disburses incentives accordingly.
✔ Step 11: Receive Incentive Disbursement
Once verified, the government transfers the incentive amount directly to the company’s bank account.
Compliance Requirements Under PLI
- Annual filings
- Asset verification reports
- Statutory audit certification
- Adherence to value addition norms
- Periodic updates to PMA
Companies must maintain transparency and accurate documentation.
Common Mistakes to Avoid
- Incomplete DPR
- Incorrect investment forecasts
- Missing application deadlines
- Non-compliance with value addition norms
- Late submission of claims
SavingMantra recommends a professional review before submission.
Frequently Asked Questions (FAQ)
1. Is PLI available to startups?
Yes, if they meet investment and sales criteria.
2. Are incentives guaranteed?
Only if the company achieves incremental sales and meets scheme conditions.
3. Can foreign companies apply?
Yes, through an Indian subsidiary.
4. Who verifies PLI claims?
The PMA (Project Management Agency) appointed by the respective ministry.
5. Is PLI applicable for service-based companies?
No, it is primarily for manufacturing sectors.
Conclusion
The Production Linked Incentive (PLI) Schemes are a transformative step toward strengthening India’s manufacturing ecosystem. They offer substantial financial rewards, encourage innovation, and attract global investments. By following a systematic application process and meeting compliance requirements, companies can successfully leverage these incentives.
At SavingMantra, we support businesses with:
✔ PLI Application Filing
✔ DPR Preparation
✔ Investment & Compliance Advisory
✔ Incentive Claim Filings
✔ Sector-Specific Consultancy
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Disclaimer: This blog is intended for informational purposes only. PLI Schemes are governed by sector-specific ministries and government notifications, which may change over time. Readers should consult a qualified professional or refer to the latest official guidelines before taking any action. SavingMantra is not responsible for any errors, omissions, or regulatory changes affecting the information p