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Production Linked Incentive (PLI)
Scheme for Large Scale Electronics
Manufacturing
PLI Scheme
1
4% - 6%
Production Linked
Incentive for a
period of 5 years
Incentives Target Segments
Mobile Phones &
Specified Electronic
Components
Five (5) years
Application Period
4 months initially
Tenure
Financial Year
2019-20
Base Year
1. The number of applications allowed per
applicant for support under the
Scheme shall be restricted to one (1).
2. Subject to thresholds of incremental
investment and incremental sales of
manufactured goods
Eligibility Applicability
Incentives
applicable from
01.08.2020
Empowered Committee
CEO NITI Aayog
Secretary Economic Affairs
Secretary Expenditure
Secretary MeitY
Secretary Revenue
Secretary DPIIT
DGFT
Scheme Guidelines
Key Definitions (Para 2)
1
• Invoice Value: Unit Price charged on an invoice raised by an applicant on sale of manufactured goods,
net of credit notes, discounts or any other adjustments and applicable taxes
• Net Sales Turnover: Net Sales Turnover shall mean the Gross Sale Turnover net of credit notes (raised
for any purpose), discounts (including but not limited to cash, volume, turnover, target or for any other
purpose) and taxes applicable
• Manufacturing: Processing of raw material or inputs in any manner that results in emergence of a new
product having a distinct name, character [CGST Act – 2017]
• Employment: Jobs which are directly involved in the production process or with related activities
beginning from when materials enter a production facility and up until the resultant manufacturing good
leaves the production facility. Such employment shall include on-roll, contractual and apprentice
workforce in the country only
• Domestic Value Addition: A divided by B
A. Net Sales Turnover minus value of non-originating material and services used in manufacturing
B. Net Sales Turnover
Key Definitions (Para 2)
2
• Non-Originating Material and Services: Material and Services whose country of origin is other than the
country in which that material / service is used in manufacturing and any material / service whose origin
cannot be determined
• Competent Authority: Competent Authority under the Scheme shall be defined as per delegation of
powers for appraisal and approval of Public Funded Schemes and Projects vide OM No. 24(35)/PF-
II/2012 dated 05.08.2016 issued by Department of Expenditure, Ministry of Finance or any subsequent
modifications thereof
• Domestic Company(ies): Domestic Company(ies) shall be defined as those which are owned by
resident Indian citizens as defined in the FDI Policy Circular of 2017. A company is considered as
‘Owned’ by resident Indian citizens if more than 50% of the capital in it is beneficially owned by resident
Indian citizens and / or Indian companies, which are ultimately owned and controlled by resident Indian
citizens.
• Group Company(ies): Group Company(ies) shall mean two or more enterprises which, directly or
indirectly, are in a position to:
• Exercise twenty-six percent or more of voting rights in other enterprise; or
• Appoint more than fifty percent of members of board of directors in the other enterprise.
(As defined in the FDI Policy Circular of 2017)
Eligibility Criteria (Para 3)
3
General Conditions
1. Eligible companies should be engaged in manufacturing of goods in India as covered under Target
Segments.
2. Eligibility shall be subject to thresholds of Incremental Investment and Incremental Sales of
Manufactured Goods (covered under Target Segments) over the base year
3. An applicant must meet threshold criteria to be eligible for disbursement of incentive for the year under
consideration.
4. In case an applicant does not meet threshold criteria for any given year, the applicant shall not be
eligible for incentive in that particular year. However, the applicant will not be restricted from claiming
incentive in subsequent years during the tenure of the Scheme, provided eligibility criteria are met for
such subsequent years.
Qualification Criteria and Ceiling (Para 3.2 read with Para 9.3 & 9.4)
4
Eligibility shall be subject to qualification criteria for applicants under different Target Segments in the
Scheme are as defined
Segment Qualification Criteria
Ceiling on eligible
applicants*
Mobile
(Invoice
value of
INR 15,000
and above)
Consolidated Global Manufacturing Revenue of the applicant (including its
Group Companies), in the target segment, should be more than INR
10,000 Crore in the base year
5
Mobile -
Domestic
Consolidated Global Manufacturing Revenue of the applicant (including its
Group Companies), in the target segment, should be more than INR 100
Crore in the base year. Applicants under this category can only be
Domestic Companies
5
Specified
Electronic
Components
Consolidated Global Manufacturing Revenue of the applicant (including its
Group Companies), in the target segment, should be more than INR 50
Crore in the base year.
10
In case of receipt of more number of eligible applicants, eligible applications for the given Target Segment will be ranked
from highest to lowest on the basis of consolidated global manufacturing revenue of the applicants (including its group
companies), in the target segment, in the base year.
Investment (Para 3.4 and 4.1.1)
5
Specific Conditions of Incremental Investment
1. Cumulative value of investment done till such year (including the year under consideration) over the Base Year
shall be considered. (Para 3.4)
2. Investment made on or after 01.04.2020 shall be considered for determining eligibility under the Scheme. (Para
4.1.1)
Sale of Manufactured Goods (Para 3.3)
6
Specific Conditions of Incremental Sale of Manufactured Goods (Covered under Target Segments)
1. Total Sales of Manufactured Goods covered under Target Segments for such year over the Base Year,
irrespective of Invoice Value (whether below or above INR 15,000 in case of Mobile Phones) shall be
considered.
Investment (Para 4)
7
General Conditions
1. Expenditure on consumables and raw material used for manufacturing shall not be considered
2. The date of invoice would be considered as the date of investment
3. The heads of Investment, based on which eligibility is being determined, should be capitalized
in the books of accounts of the applicants
4. The expenditure incurred on land and building (including factory building / construction)
required for the project / unit is not covered under the Scheme
Investment (Para 4)
8
# CATEGORY DEFINITION CONDITION
1
Plant, Machinery,
Equipment
q Expenditure on plant, machinery, equipment as well
as tools, dies, moulds, jigs, fixtures (including parts,
accessories, components, and spares thereof) of
the same, used in the design, manufacturing,
assembly, testing, packaging or processing of any
of the goods covered under Target Segments
q Expenditure on packaging, freight / transport,
insurance, and erection and commissioning of the
plant, machinery & equipment
q Para 4.2.3 of the Scheme Guidelines:
Used / Refurbished Plant, Machinery
and Equipment allowed under the
Scheme shall have a residual life of
atleast 5 years as per Hazardous and
Other Wastes (Management and
Transboundary Movement) Rules, 2016
amended vide Ministry of Environment,
Forest and Climate Change Notification
dated 11.06.2018.
q Further, the valuation certificate by a
Chartered Engineer assessing the value
and residual life shall also be required.
Investment (Para 4)
# CATEGORY DEFINITION CONDITION
2
Research &
Development
q Capital expenditure on R&D and product development related
to Target Segments
q Expenditure on in-house and captive R&D, directly
attributable to goods covered under Target Segments,
including all stages in the entire value chain of the goods
proposed to be manufactured including software
q Expenditure shall include test and measuring instruments,
prototypes used for testing, purchase of design tools,
software cost (directly used for R&D) and license fee,
expenditure on technology, IPR, Patents and Copyrights for
R&D
q The applicant shall provide a
statutory auditor certificate
and purchase agreements in
respect of the cost of
technology, IPRs, patents and
copyrights.
3
Transfer of
Technology (ToT)
q Includes Cost of Technology and Initial Technology purchase
related to goods covered under Target Segments
q All taxes and duties (whether creditable or not) are included in
such expenditure
q The applicant shall provide a
statutory auditor certificate
and purchase agreements in
respect of the cost of
technology, IPRs, patents and
copyrights.
9
Investment (Para 4)
# CATEGORY DEFINITION CONDITION
4 Associated Utilities
q Captive power and effluent treatment plants,
essential equipment required in operations areas
q Incl. IT and ITES infrastructure related to
manufacturing including servers, software and ERP
solutions
q The applicant shall provide a statutory
auditor certificate and purchase
agreements in respect of the cost of
technology, IPRs, patents and
copyrights.
10
1. Application can be made by any company registered in India.
2. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1).
3. PMA / MeitY to receive the application (through an Online Portal) and issue acknowledgement
4. Application Fee is Rs. One Lakh
5. Application to have Company Details, Promoter Details, Credit History, Key Financial Details.
6. Applicant to provide Forecasted Revenue in Targeted Segments, Proposed Plan for Domestic Value Addition
and Employment Generation in India for next 5 years.
7. Details of Proposed Investment with Sources of Funding to be provided.
Application Process (Para 5, 6 and Annexure 3)
11
Application Process (Para 5 and Annexure 3)
Applicant
Submit the
Application
Application
received by
MeitY / PMA
10
days
Application
closed under
intimation to
the applicant
Applicant
informed
accordingly
Application closed under
intimation to applicant
15
days
Acknowledgem
ent Issued
Doesn’t m
eet
prim
a
facie
criteria
Incomplete
M
e
e
t
s
p
r
i
m
a
f
a
c
i
e
c
r
i
t
e
r
i
a
Prima facie
examination
Prima facie examination
A
p
p
l
i
c
a
t
i
o
n
c
o
m
p
l
e
t
e
d
Application
not com
pleted
PMA will make
appropriate
recommendation
to EC
Appraisal on
ongoing basis
PMA shall issue a Letter
of Approval post approval
from Competent Authority
5
days
12
Project Management Agency (PMA) – (Para 7)
q Receipt of application, examination and appraisal of applications and issuing acknowledgements
q Recommendations to the Empowered Committee (EC) for approval of applications
q Determination of Baseline for Sales of Manufactured Goods and Investment
q Verification of thresholds for determining eligibility
q Examination of claims for disbursement of incentive
q Verification of the reconciliation of disbursement claims
q Quarterly Review Reports
Nomination of PMA
q Industrial Finance Corporation of India (IFCI)
• Public Finance Institution
• Disbursement Agency of MSIPS
13
Empowered Committee (EC) – (Para 8)
q Authorized to carry out any amendments in Scheme Guidelines.
q Consider applications, as recommended by the PMA for approval, and make recommendations to the
Competent Authority for approval
q Consider baselines for Investment and Sale of Manufactured Goods under the Target Segments, as
determined by the PMA, and grant approval of such baselines.
q Consider claims for disbursement, as examined and recommended by the PMA, and grant approval for
disbursement of incentives.
q May revise Incentive Rates, Ceilings, Target Segments, and Eligibility Criteria
q In case of a Force Majeure event, may amend, modify, or withdraw any clauses under the scheme
q Conduct periodic review of the Scheme
q May hold stakeholder consultation as and when deemed necessary
14
Approval (Para 9)
1. Project Management Agency (PMA) will appraise the applications and make appropriate
recommendations to the Empowered Committee (EC) for approval
2. EC will consider applications, as recommended by PMA for approval and make appropriate
recommendations to the Competent Authority as defined under the scheme (as per delegation of powers
given by DoE)
3. Competent Authority will give the approval. Thereafter, PMA shall issue Approval Letter to the applicant
4. Approval letter shall clearly state the following:
• Name of Applicant
• Target Segment
• Eligible Product
• Yearly Thresholds of Incremental Investment and Incremental Sales of Manufactured Goods
applicable for determining eligibility
• Yearly Ceiling on Incremental Sales of Manufactured Goods on which incentive shall be
applicable
• Plan for Domestic Value Addition during the tenure of the Scheme
• Plan for Employment Generation in India during the tenure of the Scheme
15
Baseline Determination (Para 10)
Period for Baseline Determination
Investment
As on 31.03.2020
Sales of Manufactured Goods
First Year
Period from
01.08.2019 to
31.03.2020
Second Year
Onwards
Period from
01.04.2019 to
31.03.2020
• PMA shall determine the baseline based on information / documents submitted by the applicant.
• PMA shall make appropriate recommendations to the Empowered Committee (EC) for approval of the
baseline.
• After receiving approval from EC, PMA shall communicate the baselines to the applicants
16
Calculation of Incentive (Para 11)
Net Incremental Sales of Eligible Product x Rate of Incentive
Where
• Net Incremental Sales shall be Net Sales Turnover of Eligible Product for the period to which claim for disbursement of
incentive pertains minus the Net Sales Turnover of said Eligible Product as per baseline
• The incentive amount payable will be subject to ceilings on Net Incremental Sales Turnover on which incentive shall be
applicable as determined by EC
• The annual financial outlay will be appropriated proportionately depending on number of applicants under each target
segment. At the end of the year, unappropriated incentive amount resulting from underperformance by any
applicant(s), will be allocated to the remaining eligible applicants relative to their performance under the Scheme.
Illustratively, if there are five (5) eligible applicants under Mobile Phones (Invoice Value of INR 15,000 and above)
target segment, the year-wise incentive ceiling per applicant will be 1/5th of the annual financial outlay for the said
target segment.
17
Disbursement Process (Para 12)
Applicant
submits the
Claim for
Disbursement
PMA will examine claims,
verify eligibility, and assess
incentive payable
D
o
u
b
t
w
.
r
.
t
.
d
e
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e
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m
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i
b
i
l
i
t
y
a
n
d
i
n
c
e
n
t
i
v
e
Approval from
Empowered
Committee PMA shall disburse funds
after completion of all pre-
disbursal formalities, after
funds are made available
Refer to MeitY,
Decision of MeitY
will be final
PMA to process claims
and make appropriate
recommendations to EC
18
THANK YOU
PLI Scheme – Eligibility Criteria
1
Segment
Proposed Incentive
Rate (%)
Incremental Investment over
Base Year
Incremental Sales of Manufactured
Goods over Base Year
Mobile
(Invoice value of
INR 15,000 and above) *
Year 1: 6%
Year 2: 6%
Year 3: 5%
Year 4: 5%
Year 5: 4%
INR 1,000 Crore over 4 Years
Cumulative Minimum
Year 1: 250
Year 2: 500
Year 3: 750
Year 4: 1000
Year 1: INR 4,000 Crore
Year 2: INR 8,000 Crore
Year 3: INR 15,000 Crore
Year 4: INR 20,000 Crore
Year 5: INR 25,000 Crore
Mobile - Domestic
INR 200 Crores over 4 Years
Cumulative Minimum
Year 1: 50
Year 2: 100
Year 3: 150
Year 4: 200
Year 1: INR 500 Crore
Year 2: INR 1,000 Crore
Year 3: INR 2,000 Crore
Year 4: INR 3,500 Crore
Year 5: INR 5,000 Crore
Specified Electronic
Components
INR 100 Crores over 4 Years
Cumulative Minimum
Year 1: 25
Year 2: 50
Year 3: 75
Year 4: 100
Year 1: INR 100 Crore
Year 2: INR 200 Crore
Year 3: INR 300 Crore
Year 4: INR 450 Crore
Year 5: INR 600 Crore
PLI Scheme – List of Specified Electronic Components
2
S. No. Description of Goods
1. SMT components
2. Discrete semiconductor devices including transistors, diodes, thyristors, etc.
3.
Passive components including resistors, capacitors, etc. for electronic
applications
4.
Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films,
PCB printing inks
5. Sensors, transducers, actuators, crystals for electronic applications
6. System in Package (SIP)
7.
Micro / Nano-electronic components such as Micro Electromechanical
Systems (MEMS) and Nano Electromechanical Systems (NEMS)
8. Assembly, Testing, Marketing and Packaging (ATMP) units

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PLI-Guidelines-Presentation.pdf

  • 1. Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing
  • 2. PLI Scheme 1 4% - 6% Production Linked Incentive for a period of 5 years Incentives Target Segments Mobile Phones & Specified Electronic Components Five (5) years Application Period 4 months initially Tenure Financial Year 2019-20 Base Year 1. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1). 2. Subject to thresholds of incremental investment and incremental sales of manufactured goods Eligibility Applicability Incentives applicable from 01.08.2020 Empowered Committee CEO NITI Aayog Secretary Economic Affairs Secretary Expenditure Secretary MeitY Secretary Revenue Secretary DPIIT DGFT
  • 4. Key Definitions (Para 2) 1 • Invoice Value: Unit Price charged on an invoice raised by an applicant on sale of manufactured goods, net of credit notes, discounts or any other adjustments and applicable taxes • Net Sales Turnover: Net Sales Turnover shall mean the Gross Sale Turnover net of credit notes (raised for any purpose), discounts (including but not limited to cash, volume, turnover, target or for any other purpose) and taxes applicable • Manufacturing: Processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character [CGST Act – 2017] • Employment: Jobs which are directly involved in the production process or with related activities beginning from when materials enter a production facility and up until the resultant manufacturing good leaves the production facility. Such employment shall include on-roll, contractual and apprentice workforce in the country only • Domestic Value Addition: A divided by B A. Net Sales Turnover minus value of non-originating material and services used in manufacturing B. Net Sales Turnover
  • 5. Key Definitions (Para 2) 2 • Non-Originating Material and Services: Material and Services whose country of origin is other than the country in which that material / service is used in manufacturing and any material / service whose origin cannot be determined • Competent Authority: Competent Authority under the Scheme shall be defined as per delegation of powers for appraisal and approval of Public Funded Schemes and Projects vide OM No. 24(35)/PF- II/2012 dated 05.08.2016 issued by Department of Expenditure, Ministry of Finance or any subsequent modifications thereof • Domestic Company(ies): Domestic Company(ies) shall be defined as those which are owned by resident Indian citizens as defined in the FDI Policy Circular of 2017. A company is considered as ‘Owned’ by resident Indian citizens if more than 50% of the capital in it is beneficially owned by resident Indian citizens and / or Indian companies, which are ultimately owned and controlled by resident Indian citizens. • Group Company(ies): Group Company(ies) shall mean two or more enterprises which, directly or indirectly, are in a position to: • Exercise twenty-six percent or more of voting rights in other enterprise; or • Appoint more than fifty percent of members of board of directors in the other enterprise. (As defined in the FDI Policy Circular of 2017)
  • 6. Eligibility Criteria (Para 3) 3 General Conditions 1. Eligible companies should be engaged in manufacturing of goods in India as covered under Target Segments. 2. Eligibility shall be subject to thresholds of Incremental Investment and Incremental Sales of Manufactured Goods (covered under Target Segments) over the base year 3. An applicant must meet threshold criteria to be eligible for disbursement of incentive for the year under consideration. 4. In case an applicant does not meet threshold criteria for any given year, the applicant shall not be eligible for incentive in that particular year. However, the applicant will not be restricted from claiming incentive in subsequent years during the tenure of the Scheme, provided eligibility criteria are met for such subsequent years.
  • 7. Qualification Criteria and Ceiling (Para 3.2 read with Para 9.3 & 9.4) 4 Eligibility shall be subject to qualification criteria for applicants under different Target Segments in the Scheme are as defined Segment Qualification Criteria Ceiling on eligible applicants* Mobile (Invoice value of INR 15,000 and above) Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 10,000 Crore in the base year 5 Mobile - Domestic Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 100 Crore in the base year. Applicants under this category can only be Domestic Companies 5 Specified Electronic Components Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 50 Crore in the base year. 10 In case of receipt of more number of eligible applicants, eligible applications for the given Target Segment will be ranked from highest to lowest on the basis of consolidated global manufacturing revenue of the applicants (including its group companies), in the target segment, in the base year.
  • 8. Investment (Para 3.4 and 4.1.1) 5 Specific Conditions of Incremental Investment 1. Cumulative value of investment done till such year (including the year under consideration) over the Base Year shall be considered. (Para 3.4) 2. Investment made on or after 01.04.2020 shall be considered for determining eligibility under the Scheme. (Para 4.1.1)
  • 9. Sale of Manufactured Goods (Para 3.3) 6 Specific Conditions of Incremental Sale of Manufactured Goods (Covered under Target Segments) 1. Total Sales of Manufactured Goods covered under Target Segments for such year over the Base Year, irrespective of Invoice Value (whether below or above INR 15,000 in case of Mobile Phones) shall be considered.
  • 10. Investment (Para 4) 7 General Conditions 1. Expenditure on consumables and raw material used for manufacturing shall not be considered 2. The date of invoice would be considered as the date of investment 3. The heads of Investment, based on which eligibility is being determined, should be capitalized in the books of accounts of the applicants 4. The expenditure incurred on land and building (including factory building / construction) required for the project / unit is not covered under the Scheme
  • 11. Investment (Para 4) 8 # CATEGORY DEFINITION CONDITION 1 Plant, Machinery, Equipment q Expenditure on plant, machinery, equipment as well as tools, dies, moulds, jigs, fixtures (including parts, accessories, components, and spares thereof) of the same, used in the design, manufacturing, assembly, testing, packaging or processing of any of the goods covered under Target Segments q Expenditure on packaging, freight / transport, insurance, and erection and commissioning of the plant, machinery & equipment q Para 4.2.3 of the Scheme Guidelines: Used / Refurbished Plant, Machinery and Equipment allowed under the Scheme shall have a residual life of atleast 5 years as per Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 amended vide Ministry of Environment, Forest and Climate Change Notification dated 11.06.2018. q Further, the valuation certificate by a Chartered Engineer assessing the value and residual life shall also be required.
  • 12. Investment (Para 4) # CATEGORY DEFINITION CONDITION 2 Research & Development q Capital expenditure on R&D and product development related to Target Segments q Expenditure on in-house and captive R&D, directly attributable to goods covered under Target Segments, including all stages in the entire value chain of the goods proposed to be manufactured including software q Expenditure shall include test and measuring instruments, prototypes used for testing, purchase of design tools, software cost (directly used for R&D) and license fee, expenditure on technology, IPR, Patents and Copyrights for R&D q The applicant shall provide a statutory auditor certificate and purchase agreements in respect of the cost of technology, IPRs, patents and copyrights. 3 Transfer of Technology (ToT) q Includes Cost of Technology and Initial Technology purchase related to goods covered under Target Segments q All taxes and duties (whether creditable or not) are included in such expenditure q The applicant shall provide a statutory auditor certificate and purchase agreements in respect of the cost of technology, IPRs, patents and copyrights. 9
  • 13. Investment (Para 4) # CATEGORY DEFINITION CONDITION 4 Associated Utilities q Captive power and effluent treatment plants, essential equipment required in operations areas q Incl. IT and ITES infrastructure related to manufacturing including servers, software and ERP solutions q The applicant shall provide a statutory auditor certificate and purchase agreements in respect of the cost of technology, IPRs, patents and copyrights. 10
  • 14. 1. Application can be made by any company registered in India. 2. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1). 3. PMA / MeitY to receive the application (through an Online Portal) and issue acknowledgement 4. Application Fee is Rs. One Lakh 5. Application to have Company Details, Promoter Details, Credit History, Key Financial Details. 6. Applicant to provide Forecasted Revenue in Targeted Segments, Proposed Plan for Domestic Value Addition and Employment Generation in India for next 5 years. 7. Details of Proposed Investment with Sources of Funding to be provided. Application Process (Para 5, 6 and Annexure 3) 11
  • 15. Application Process (Para 5 and Annexure 3) Applicant Submit the Application Application received by MeitY / PMA 10 days Application closed under intimation to the applicant Applicant informed accordingly Application closed under intimation to applicant 15 days Acknowledgem ent Issued Doesn’t m eet prim a facie criteria Incomplete M e e t s p r i m a f a c i e c r i t e r i a Prima facie examination Prima facie examination A p p l i c a t i o n c o m p l e t e d Application not com pleted PMA will make appropriate recommendation to EC Appraisal on ongoing basis PMA shall issue a Letter of Approval post approval from Competent Authority 5 days 12
  • 16. Project Management Agency (PMA) – (Para 7) q Receipt of application, examination and appraisal of applications and issuing acknowledgements q Recommendations to the Empowered Committee (EC) for approval of applications q Determination of Baseline for Sales of Manufactured Goods and Investment q Verification of thresholds for determining eligibility q Examination of claims for disbursement of incentive q Verification of the reconciliation of disbursement claims q Quarterly Review Reports Nomination of PMA q Industrial Finance Corporation of India (IFCI) • Public Finance Institution • Disbursement Agency of MSIPS 13
  • 17. Empowered Committee (EC) – (Para 8) q Authorized to carry out any amendments in Scheme Guidelines. q Consider applications, as recommended by the PMA for approval, and make recommendations to the Competent Authority for approval q Consider baselines for Investment and Sale of Manufactured Goods under the Target Segments, as determined by the PMA, and grant approval of such baselines. q Consider claims for disbursement, as examined and recommended by the PMA, and grant approval for disbursement of incentives. q May revise Incentive Rates, Ceilings, Target Segments, and Eligibility Criteria q In case of a Force Majeure event, may amend, modify, or withdraw any clauses under the scheme q Conduct periodic review of the Scheme q May hold stakeholder consultation as and when deemed necessary 14
  • 18. Approval (Para 9) 1. Project Management Agency (PMA) will appraise the applications and make appropriate recommendations to the Empowered Committee (EC) for approval 2. EC will consider applications, as recommended by PMA for approval and make appropriate recommendations to the Competent Authority as defined under the scheme (as per delegation of powers given by DoE) 3. Competent Authority will give the approval. Thereafter, PMA shall issue Approval Letter to the applicant 4. Approval letter shall clearly state the following: • Name of Applicant • Target Segment • Eligible Product • Yearly Thresholds of Incremental Investment and Incremental Sales of Manufactured Goods applicable for determining eligibility • Yearly Ceiling on Incremental Sales of Manufactured Goods on which incentive shall be applicable • Plan for Domestic Value Addition during the tenure of the Scheme • Plan for Employment Generation in India during the tenure of the Scheme 15
  • 19. Baseline Determination (Para 10) Period for Baseline Determination Investment As on 31.03.2020 Sales of Manufactured Goods First Year Period from 01.08.2019 to 31.03.2020 Second Year Onwards Period from 01.04.2019 to 31.03.2020 • PMA shall determine the baseline based on information / documents submitted by the applicant. • PMA shall make appropriate recommendations to the Empowered Committee (EC) for approval of the baseline. • After receiving approval from EC, PMA shall communicate the baselines to the applicants 16
  • 20. Calculation of Incentive (Para 11) Net Incremental Sales of Eligible Product x Rate of Incentive Where • Net Incremental Sales shall be Net Sales Turnover of Eligible Product for the period to which claim for disbursement of incentive pertains minus the Net Sales Turnover of said Eligible Product as per baseline • The incentive amount payable will be subject to ceilings on Net Incremental Sales Turnover on which incentive shall be applicable as determined by EC • The annual financial outlay will be appropriated proportionately depending on number of applicants under each target segment. At the end of the year, unappropriated incentive amount resulting from underperformance by any applicant(s), will be allocated to the remaining eligible applicants relative to their performance under the Scheme. Illustratively, if there are five (5) eligible applicants under Mobile Phones (Invoice Value of INR 15,000 and above) target segment, the year-wise incentive ceiling per applicant will be 1/5th of the annual financial outlay for the said target segment. 17
  • 21. Disbursement Process (Para 12) Applicant submits the Claim for Disbursement PMA will examine claims, verify eligibility, and assess incentive payable D o u b t w . r . t . d e t e r m i n i n g e l i g i b i l i t y a n d i n c e n t i v e Approval from Empowered Committee PMA shall disburse funds after completion of all pre- disbursal formalities, after funds are made available Refer to MeitY, Decision of MeitY will be final PMA to process claims and make appropriate recommendations to EC 18
  • 23. PLI Scheme – Eligibility Criteria 1 Segment Proposed Incentive Rate (%) Incremental Investment over Base Year Incremental Sales of Manufactured Goods over Base Year Mobile (Invoice value of INR 15,000 and above) * Year 1: 6% Year 2: 6% Year 3: 5% Year 4: 5% Year 5: 4% INR 1,000 Crore over 4 Years Cumulative Minimum Year 1: 250 Year 2: 500 Year 3: 750 Year 4: 1000 Year 1: INR 4,000 Crore Year 2: INR 8,000 Crore Year 3: INR 15,000 Crore Year 4: INR 20,000 Crore Year 5: INR 25,000 Crore Mobile - Domestic INR 200 Crores over 4 Years Cumulative Minimum Year 1: 50 Year 2: 100 Year 3: 150 Year 4: 200 Year 1: INR 500 Crore Year 2: INR 1,000 Crore Year 3: INR 2,000 Crore Year 4: INR 3,500 Crore Year 5: INR 5,000 Crore Specified Electronic Components INR 100 Crores over 4 Years Cumulative Minimum Year 1: 25 Year 2: 50 Year 3: 75 Year 4: 100 Year 1: INR 100 Crore Year 2: INR 200 Crore Year 3: INR 300 Crore Year 4: INR 450 Crore Year 5: INR 600 Crore
  • 24. PLI Scheme – List of Specified Electronic Components 2 S. No. Description of Goods 1. SMT components 2. Discrete semiconductor devices including transistors, diodes, thyristors, etc. 3. Passive components including resistors, capacitors, etc. for electronic applications 4. Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks 5. Sensors, transducers, actuators, crystals for electronic applications 6. System in Package (SIP) 7. Micro / Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS) 8. Assembly, Testing, Marketing and Packaging (ATMP) units