PRODUCTION LINKED INCENTIVES

ABOUT PRODUCTION LINKED INCENTIVE “PLI” SCHEME:

During the Financial Year (2019-2020) the Government of India, on behest of the Trade Bodies recommendations, worked out and approved the Production Linked Incentives (PLI) Scheme for 10 Key sectors in order to not only enhance India’s manufacturing capabilities but at the same time generate employment, thus seeking to propel the economy.  10 Key sectors were chosen and approved by India’s Cabinet as per vision 2025. For this, a total outlay of Rs 1.98 Lac Crores is pegged to be incentivised.

Jotwani Associates assists Clients with the following:

1. Checking the eligibility of your company for Production Linked Incentives (Free of Charge)
2. Application assistance under the schemes;
3. Representing before authorities for the above applications,
4. Assistance in calculating the amount of incentive,
5. Following up with the relevant authorities for disbursement.

MOVING FORWARD

The Production Link Incentives (“PLI”) vary from 4% to 6% of revenues, based on incremental sales and investments. The definition of sales, investments, thresholds eligibility and incentives are different, for different sectors. Therefore, Jotwani Associates advises to follow the steps enumerated as below:

1. Step 1: (2-days): Seek a Free Assessment on eligibility. Contact us at +919730049704, or email at contact@jotwani.com
2. Step 2: (3-day): Evaluation Report Discussion (Conference Call), Engagement Letter, Sharing of the list of documentation required
3. Step 3: (14-days): After submission of documents from the client: application preparation, it’s approval from the client and filing at the Ministry 
4. Step 4:  (14-days or earlier): First follow up and review of objections, if any

SECTORS, MINISTRY AND PRODUCTS

1. Sector: Advanced Chemistry, Cell (ACC) Battery. Approving Ministry: NITI Aayog and Department of Heavy Industries ACC Batteries
2. Sector: Electronic/ Technology Products Approving Ministry:       Ministry of Electronics and Information Technology         Semiconductor Fab, Display Fab, Laptop/ Notebooks, Servers, IoT Devices, Specified Computer Hardware
3. Sector: Automobiles & Auto Components     Department of Heavy Industries Automobile and Auto Components
4. Sector:                    Pharmaceuticals drugs            Department of Pharmaceuticals Biopharmaceuticals, Complex generic drugs, Patented drugs or drugs nearing patent expiry, Cell-based or gene therapy products, Orphan drugs, Special empty capsules, Complex excipients, Category 2: Active Pharma Ingredients (APIs) /Key Starting Materials (KSMs) and /Drug Intermediaries (Dls). Category 3: Repurposed Drugs, Auto-immune drugs, Anti-cancer drugs, Antidiabetic drugs, Anti Infective drugs, Cardiovascular drugs, Psychotropic drugs and Anti-Retroviral drugs, In-vitro Diagnostic Devices (IVDs), Phytopharmaceuticals, Other drugs not manufactured in India, Other drugs as approved
5. Sector:                  Telecom & Networking Products Department of Telecom Core Transmission Equipment, 4G/5G, Next Generation Radio Access Network and Wireless Equipment, Access & Customer Premises Equipment (CPE), Internet of Things (IoT) Access Devices and Other WirelessEquipment, Enterprise equipment: Switches, Router
6. Sector: Textile Products: MMF segment and technical textiles Ministry of Textiles          Man-Made Fiber Segment, Technical Textiles
7. Sector: Food Products Ministry of Food Processing Industries Ministry of Food Processing Industries, Ready to Eat /  Ready to Cook (RTE/ RTC), Marine Products, Fruits & Vegetables, Honey, Desi Ghee, Mozzarella Cheese, Organic eggs, and poultry meat
8. Sector: High-Efficiency Solar PV Modules Ministry of New and Renewable Energy Solar PV
9. Sector: White Goods (ACs & LED) Department for Promotion of Industry and Internal Trade              Air conditioners, LED
10. Sector: Speciality Steel  Ministry of Steel  Coated Steel, High Strength Steel, Steel Rails, Ally Steel Bars & Rods