PLI schemes is like a gateway for Indian companies to boost their businesses, production or service capacities and along with that helps in creating new jobs in India.

Hon'ble Finance Minister, Smt. Nirmala Sitharaman has announced an outlay of INR 1.97 Lakh Crores for the Production Linked Incentive (PLI) Schemes across 14 key sectors which will help in creating 60 lakh new jobs, and an additional production of 30 lakh crore during next 5 years.

The scheme also invites foreign companies to set up units in India along with the aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment and cut down the country’s reliance on imports from other countries.

Eligibility criteria of the PLI scheme:

Companies that are registered in India and are involved in the manufacturing of goods covered under the target segments of the scheme can apply under the PLI Scheme. Eligibility under the Scheme shall be subject to thresholds of Incremental Investment (covered under Target Segments) over the base year as defined. An applicant must meet threshold criteria (i.e. incremental investment) that is a minimum of INR 10 crore (MSME) or INR 100 crore (Others) and a maximum of INR 1000 crore) to be eligible for disbursement of incentive for the year under consideration. To meet the threshold criteria of Incremental Investment for any year, the cumulative value of investment done till such year (including the year under consideration) over the Base Year shall be considered. Some sectors also have threshold criteria for incremental sales.

The applicant can operate existing or new manufacturing unit at one or more locations in the country. Any additional expenditure incurred by companies on plant, machinery, equipment, research and development and transfer of technology for manufacture in the target segments will be eligible for the incentive scheme.

Government has listed out the sectors eligible for PLI schemes along with the incentive amount which as are as follows:

Many listed and unlisted have already been selected under these PLI schemes of different sectors. We will cover each sector in upcoming articles on PLI schemes so keep following this space for list of companies benefited through PLI schemes, so that you can think of investing in those companies for long term perspectives.

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