The “Make in India” (MII) initiative, launched by the Government of India, seeks to incentivize companies to manufacture and assemble products within the country. While it has not fully met its original goal of having manufacturing contribute 25% of GDP by 2022, MII has attracted significant investment commitments and facilitated foreign direct investment by relaxing regulations and increasing license validity. This campaign, with slogans like “Zero Defect Zero Effect,” also encourages producing high-quality goods with minimal environmental impact. The MII program has spurred investments across various sectors, including automotive, aviation, biotechnology, defense, electronics, and renewable energy, with notable foreign companies setting up manufacturing and R&D facilities in India.
A key component of the MII initiative is the Production-Linked Incentive (PLI) scheme, designed to boost domestic manufacturing and reduce import dependency. This scheme offers financial incentives to companies based on their incremental sales and investments from products manufactured in India. The PLI scheme has been allocated for 14 sectors, including mobile manufacturing, pharmaceuticals, automobiles, and solar modules, and aims to attract both domestic and foreign companies. The scheme’s objectives include creating jobs, promoting technological advancements, and enhancing India’s global competitiveness by encouraging mass production. The “Atmanirbhar Bharat Abhiyan” (Self-Reliant India Mission), a related initiative, gained prominence during the COVID-19 pandemic to promote economic self-sufficiency, reducing reliance on imports and strengthening India’s role in the global supply chain. This mission has led to initiatives like “Vocal for Local,” encouraging the consumption of domestic products and fostering a self-reliant economy.
161 FAQs on Production Link Incentive (PLI) for Make in India (MII)
Chapter-I– MII initiative
1. What is Introduction for MII initiative?
(i) MIIis initiative taken by Government of India (Govt.) to create and to encourage companies for developing, manufacturing and also assembling products in India “all”.
(ii) MII is to incentivize for “dedicated” investments in manufacturing.
(iii) MII is to create “conducive” environment for investments and to develop modern efficient infrastructures and also to open “new” sectors “all” for foreign capitals.
(iv) MII was unsuccessful to achieve its targets e. 25% GDP’s shares in manufacturing for period ended on Dec 31, 2022 where “actually” achieved from 16.7% in 2013-2014 to 15.9% in 2023-2024
2. What is MII initiative for Govt. of India?
(i) MII is announced in 2014 with 3 objectives like:
(a) For increasing “manufacturing” growth rate from 12% to 14% “per” annum
(b) For creating 100 million “additional” manufacturing jobs in India for period ended on Dec 31, 2022
(c) For ensuring “manufacturing” sector’ contribution to GDP to 25% for period ended on Dec 31, 2022
(ii) Govt. has made investment commitments for INR 40 lac crore where investment inquiries were received for INR 1.5 lakh crore from Sep. 2014 to Feb. 2016
(iii) Govt. has permitted 100% Foreign Direct Investments (FDIs) in “most” sectors except space industry, defense industry and also media “all”
(iv) Japan and India have announced budget of USD 12 billion for pushing investments in India under Japan-India Make-in-India Special Finance Facility
3. What is MII initiative for Govt. of State(s)?
- MII is launched by “individual” state govts. through “local” initiatives like:
(i) Utkarsh Odisha by Odisha govt.
(ii) Tamil Nadu Global Investors Meet by Tamil Nadu govt.
(iii) Vibrant Gujarat by Gujarat govt.
(iv) Happening Haryana by Haryana Govt.
(v) Magnetic Maharashtra by Maharashtra govt.
4. What is World bank’s roles for ease of doing index?
(i) World bank has declared India’s ease of doing index 63 for 2019
(ii) World bank has declared India’s ease of doing index 130 for 2016
5. What are India’s roles for ease of doing business?
(i) Govt. has appointed United Nations Development Program (UNDP) and National Productivity Council (NPC) “both” for sensitizing “actual” users and also getting feedback on several “reform” measures.
(ii) State govts. have created competitions among themselves for improving their current ranking on ease of doing business index on completions percentage scores based on 98-point action plan for business
6. What is MII initiative for Outside India?
(i) Campaign was designed by Wieden, Kennedy with launch of web portal and brochures’ releases for 25 sectors “after” relaxing “foreign” equity caps, norms and also procedures in several sectors “all”.
(ii) Govt. has facilitated “online” applications and also increased license’s validity to 3 years “both”.
7. What is Zero Defect Zero Effect?
- Prime Minister Narendra Modi has given “Zero Defect Zero Effect” slogan to guide MII initiative for producing products with no defects with no adverse environmental and also ecological effects “both”
8. What is MII Week?
(i) “MII Week” multi-sectoral industrial event was held at Mumbai Metropolitan Region Development Authority (MMRDA) from Feb 13, 2016
(ii) Event was attended:
(a) By 2500 and also international business teams “both”
(b) By 8000 and also domestic business teams “both”
(c) By 68 countries’ foreign government’s delegations
(d) By 72 countries’ business teams
(e) By 100% Indian state govts.
(iii) Event has received investments’ commitments for more than INR 2 lakh crore
(iv) Event has received investments’ commitments for more than INR 8 lakh crore from Maharashtra
(v) Event has received investment inquiries for more than INR 5 lakh crore
9. What is Public Procurement Order (PPO)?
(i) Ministry of Commerce and Industry has revised Indian public procurement order and also General Financial Rule (GFR) to incorporate preference for MII.
(ii) 100% Nodal agencies have published own orders to extend scope for MII in product’s procurement.
Chapter-II– MII’s Sectors
10. What is Automobile sector?
(i) General Motors (GM) has announced USD 1 billion investments for automobiles’ manufacturing in Maharashtra
(ii) Kiahas announced USD 1 billion investments for automobiles’ manufacturing in Anantapur, Andhra Pradesh.
11. What are Automobile components sector?
(i) Hitachi has announced investments for auto-component’s manufacturing in Chennai, Tamil Nadu
12. What is Aviation sector?
(i) Hindustan Aeronautics Limited (HAL) has manufactured 228 Fairchild-Dornier
(ii) French drone manufacturer LH Aviation has announced for manufacturing drone in India
(iii) Thurst Aircraft Pvt Ltd has signed MOU with Govt. of Maharashtra for manufacturing aero plane at Palghar district, approx. 140 km north of Mumbai with investments for INR 35,000 crore
13. What is Biotechnology sector?
- Horiba’s largest medical equipment and hematology reagent has announced manufacturing in India in Nagpur with investments for INR 200 crore
14. What is Defense sector?
(i) India and Russia have deepened MII for defense manufacturing by signing agreements for naval frigates’ construction
(ii) India and Russia have Joint Venture (JV) for manufacturing KA-226T to make 60 in Russia and also 140 in India “both”
(iii) India and Russia have JV for manufacturing Brahmos cruise missile with 5% India and also 49.5% Russia “both”
15. What is electronic system sector?
(i) Foxconn has announced R&D and also hi-tech semiconductor manufacturing facility “both” in Maharashtra with investments for USD 5 billion
(ii) Pegatron has talked to open 2nd “Indian” iPhone factory
(iii) Huawei has announced R&D campus in Bengaluru and hardware manufacturing plant in Chennai with investments for USD 170 million
(iv) Motorola has announced manufacturing at Sriperumbudur near Chennai.
(v) Micromax has announced manufacturing 3 units in 3 states e. Rajasthan, Telangana and Andhra Pradesh with investments for INR 3 billion
(vi) Qualcomm has announced to mentor 10 Indian hardware companies with potential to come up with innovative solutions and to help them to reach with global scale.
(vii) Samsung has announced 10 MSME-Samsung Technical Schools and Samsung Z1’s manufacturing in its plant at Noida “both”
(viii) Spice Group has announced mobile phone’s manufacturing unit in Uttar Pradesh (UP) with investments for INR 5 billion
(ix) Vivo Mobile India has started smartphones’ manufacturing in plant at Greater Noida with 2,200 employees.
(x) Wistron, Taiwanese company has started Blackberry, HTC and Motorola devices’ “all” manufacturing in “new” factory at Noida (UP).
(xi) Xiaomi has announced smartphones Xiaomi Redmi2 Prime manufacturing in Foxconn-run facility at Sri City, Andhra Pradesh (AP).
(xii) VVDN Technologies has expanded its manufacturing with “additional” 10-acre Global Innovation Park (GIP) in India
16. What is Food Processing sector?
(i) Marine Products Export Development Authority (MPEDA) has announced to supply “shrimp” eggs to farmers in India for shrimp’s exports from India to “other” countries.
(ii) Poseidon Aquatech has announced at Odisha Investor Summit to undertake shrimp farming and processing with investments for INR 100 crore
(iii) Indo Nissin Foods Ltd has announced to expand “existing” facility in Odisha with “additional” investments for INR 50 crore
17. What is Mining sector?
- Neyveli Lignite Corporation (NLC) India has signed MoU with Odisha’s govt. at Odisha govt. summit to start mining processing plant with investments for INR 7500 crore
18. What is Railway sector?
(i) Alstom SA, French company has announced battery’s manufacturing for using in railway traction components at Maneja site in Gujarat
(ii) GE transportation, American company has announced for starting locomotive manufacturing factories at Madhepura and Marhaura “both” in Bihar.
(iii) Hyperloop One, American company has signed Framework Agreement with Maharashtra’s government for starting route’s development from Mumbai to Pune
(iv) Indian Railways has started “new” train known as Vande Bharat Express (VBE)
19. What is Renewal energy sector?
- NLC India has announced to start 500 MW solar power plant in Odisha with investments for INR 3000 crore
20. What is Thermal power sector?
(i) has approved for construction 10 indigenously built Pressurized Heavy Water Reactors (PHWRs)
(ii) Govt. has awarded contracts to “Indian” companies engaged in PHSWR’s manufacturing for INR 70000 crore
(iii) 10 indigenously built PHWRs are having combined nuclear capacity of 7 GW for creating 33400 direct and indirect jobs “both”.
(iv) NLC has signed MoU with Odisha’s at Odisha investor summit to start 2000 MW Thermal power plant with investments for INR 15000 crore
21. What is Wellness and Healthcare sector?
(i) Assam Cancer Care Foundation (ACCF) is joint partnership between Assam’s and Tata Trust “both”.
(ii) Tata Trust has announced to start 6 cancer hospitals and to lay foundation stone for 7th “new” cancer hospital
(iii) Indo-UK Institute of health has announced at Assam investor summit to start medical city with investments for INR 1600 crore
22. What is Production Linked Incentive (PLI) Scheme?
(i) ’s PLI Scheme is performance “linked” incentives scheme available for companies based on their “incremental” sales and also “incremental” investments “both” from products manufactured in India
(ii) PLI Scheme is introduced for boosting manufacturing sectors and also to reduce imports “both”
(iii) PLI Scheme is encouraging “foreign and Indian” manufacturers for manufacturing products in India and also to exports outside India
(iv) Govt. has allocated INR 97 crore under PLI Scheme for 14 sectors like:
(a) Large-Scale Mobile and also specified electronics manufacturing “both”
(b) Large-Scale Critical Key Starting Materials, Drug Intermediaries and also Active Pharmaceutical Ingredients manufacturing “all”
(c) Large-Scale Medical devices manufacturing
(d) Large-Scale Automobiles and also auto components manufacturing “both”
(e) Large-Scale Pharmaceuticals Drugs manufacturing
(f) Large-Scale Specialty Steel manufacturing
(g) Large-Scale Telecom and also Networking products manufacturing “both”
(h) Large-Scale Electronic and also Technology products manufacturing “both”
(i) Large-Scale White Goods e. ACs and also LEDs manufacturing “both”
(j) Large-Scale Food Products manufacturing
(k) Large-Scale Textile Products e. MMF segment and also technical textiles manufacturing “both”
(l) Large-Scale High efficiency solar PV modules manufacturing
(m) Large-Scale Advanced Chemistry Cell (ACC) Battery manufacturing
(n) Large-Scale Drones and also Drone Components manufacturing “both”
Chapter-III- Atmanirbhar Bharat Abhiyan (ABA) Ä
23. What is Introduction?
(i) ABA is translated as Self-Reliant India associated with Prime Minister Narender Modi for promoting “economic” self-sufficiency and also “national” development “both”.
(ii) ABA is umbrella for India’s vision to become more efficient, competitive and resilient for expanding its role in “global” economy by transforming “India” into “global” supply chain hub.
(iii) Prime Minister Narender Modi had referenced English term “self-reliance” in early 2014 in discussion for national security, poverty, alleviation and digital India initiatives “all”.
(iv) Hindi phrase ABA e. Self-Reliant India Mission has gained prominence during announcement of India’s economic stimulus package for COVID-19’s pandemic
24. What is History?
(i) Minister of Home Affairs (MHA) Amit Shah has acknowledged in 2022 about certain slogans like:
(a) Atmanirbhar Bharat Abhiyan (ABA)
(b) Make in India (MII)
(c) Vocal for Local (VFL)
(ii) These slogans were adopted from Mahatma Gandhi’s efforts for Swadeshi movements
(iii) These slogans are now revised and also adopted “both” to synergy “Pre-independence” aspirations
25. What is Defence sector?
(i) Indigenous HAL’s Tejas and Multirole Light Fighter (MLF) “both” with some imported technologies have been produced under ABA initiative
(ii) Indigenous HAL’s Tejas is containing 7% in value and 75.5% in numbers
(iii) India’s defence sector is required self-sufficiency for military logistics and also food during emergencies “both”.
(iv) Ministry of Defence (MoD) has amended Defence Acquisition Procedure (DAP) in 2020
(v) Now private sector is allowed to form Joint Ventures (JVs) with Public Sector Undertakings (PSUs) in India with 51% shareholding in JV
(vi) Private sector is allowed to export maximum 25% productions
(vii) Indian Armed Forces has assured to purchase products manufactured by these JVs
(viii) Indian multirole helicopter is 1st “major” product manufacture by these JVs
26. What is Atmanirbhar Bharat Abhiyan (ABA)?
(i) 1st time Prime Minister Narender Modi has aggressively publicized ABA during Corona virus pandemic in India (2019 – 2022) due to “slow down” in India’s economy and also pandemic’s impacts “both”
(ii) Govt. has issued “economic” package which is commonly known as ABA package
(iii) Swaminathan Aiyar has written for Economic Times (ET) that ABA can be translated as self-reliance and also self -sufficiency “both”
(iv) Prime Minister Narender Modi’s policies are aiming to reduce imports and also to increase exports “both” simultaneously
(v) ABA is “prominently” observed during Indo-China border conflicts and also India’s economic dependence on China “both” for “several” sectors
(vi) Govt. has given call to boycott “Chinese” products and also to promote ABA “both”
27. What is COVID-19 Pandemic Initiatives?
(i) Research, development and manufacture of COVID-19 vaccinations in India was important example for ABA / MII.
(ii) Govt. has announced 3 ABA packages totalling to INR 87 trillion for COVID-19 crisis under ABA / MII.
(iii) Govt. has expanded definition of Small and Medium Sized Enterprises (MSMEs) for boosting “private” participation in several sectors under ABA / MII
(iv) Govt. has increased limit for Foreign Direct Investments (FDIs) in defence sector under ABA /
(v) India’s Personal Protective Equipment (PPE) sector has increased from INR 100 billion to INR 120 billion as 2nd largest “after” China under ABA /
(vi) Ministry of Consumer Affairs, Food and Public distribution has issued statement for placing “food” rationing in Aug 2020 for migrant workers’ crisis during COVID-19 pandemic under ABA /
28. What are other initiatives under ABA?
(i) Importance of education and research for self-reliance was recognized by Prime Minister Narender Modi through his address to Visva-Bharati University’s students under ABA/
(ii) “New” National Education Policy (NEP) was connected under ABA/MII
(iii) Prime Minister Narender Modi has advised students for creating surrounding with university under ABA/MII
(iv) Prime Minister Narender Modi has stressed to develop “link” between education and ABA/ MII.
(v) Raj Kumar, educationist and university administrator said that vision of “Atmanirbhar University” is combining vision of John Henry Newman’s work Idea of University with Humboldtian model of higher education under ABA / MII
(vi) All India Council for Technical Education (AICTE) apex public education bodies has asked universities for using “Indian” books where efforts are existed to promote work under ABA / MII
(vii) Home Minister Amit Shah has acknowledged “new” policy and also given due importance to svabhasha, Indian language under ABA / MII
(viii) Prime Minister Narender Modi has said that his govt. was trying to take human capital flight and also had aims of engaging India’s diaspora under ABA / MII.
(ix) Indian National Space Promotion and Authorization Centre (IN-SPACe) was formed in space sector aiming to channel India’s space talent under ABA / MII
(x) Prime Minister Narender Modi has given emphasis to reduce “imports” dependence under ABA/MII for pharmaceutical sector where 53 raw materials were imported and 35 raw materials were produced in India up to March 2022.
(xi) Defence Minister Rajnath Singh has addressed Atmanirbhar Bharat Defence Industry Outreach Webinar in August 2020 where govt. and also private defence leaders “both” have attended
(xii) Defence Minister Rajnath Singh has announced that Defence Ministry is ready for big push through imposing imports’ prohibitions on 101 military items in “next” 5 years under ABA / MII.
(xiii) Minister of Defence (MoD) has announced “positive” indigenization lists and also “negative” imports lists under ABA/MII
(xiv) MoD has increased India’s self-reliance e. Indian Indigenously Designed, Developed and Manufactured (Indian-IDDM) is created
(xv) MoD has reformed Ordnance Factory Board (OFB) and given “new” defence Public Sector Undertaking (PSU) “both” for providing “large” scale orders under ABA/MII
(xvi) MoD has decided to spent minimum capital budget 65% on “domestic” procurements and also to increase self-reliance “both” for warships and submarines’ constructions
(xvii) Prime Minister Narender Modi has announced slogan “Vocal for local” in toy fair under ABA/MII.
29. What are Slogans under ABA/MII?
- Prime Minister Modi has announced certain slogans like:
(i) Local for vocal
(ii) Local for global
(iii) Make for world
(iv) Brain drains to brain gains
30. What is Vocal for local under ABA/MII?
(i) Prime Minister Modi has given slogan “Vocal for local” in his Independence Day Speech in 2020 under ABA/MII
(ii) Prime Minister Modi has appreciated that local products are required for “Vocal for local” under ABA/MII.
(iii) Prime Minister Modi has appreciated that local products are required to encourage under ABA/
(iv) Amul Managing Director (MD) RS Sodhi has said that “Vocal for local” are required for competitive vis-à-vis global brands
32. What is Make for world under ABA/MII?
(i) Prime Minister Narender Modi has said in his Independence Day Speech in 2020 that Make for world are required under ABA/MII
(ii) Niti Aayog’s Vice-Chairperson (VC) Arvind Panagariya has said that make for world is matter for optics and policy change “both” under ABA/MII.
(iii) India became top “smart phone” exporters to US in 2025 overtaking China and also in year-to-year 240% growth “both” under ABA/MII.
(iv) India became trusted “global manufacturing” hub when Apple has shifted “substantial” manufacturing to India under ABA/MII.
32. What is Domestic Commentary under ABA/MII?
(i) Finance Minister (FM) Nirmala Sitharama has said that at least don’t buy Ganesha idols from China “after” commenting on India’s over-reliance on “non-essential” Chinese imports under ABA/MII.
(ii) India’s opposition parties have said that ABA/MII are re-packaged version of Make in India movement being used since its independence in 1947.
(iii) India’s opposition parties have said that India was “already” self-reliance when several works were carried since its independence in 1947 like:
(a) Formation of Steel Authority of India (SAIL) for steel production.
(b) Indian Institute of Technology (IIT) for domestic engineers
(c) All India Institutes of Medical Sciences (AIIMS) for medical science
(d) Defence Research and Development Organization (DRDO) for defence research
(e) Hindustan Aeronautics Limited (HAL) for aviation
(f) Space Research Organization (ISRO) for space research
(g) Central Coalfields (CCL) NTPCand GAIL “all” for energy
33. What are international reactions under ABA/MII?
(i) Global policy experts and also “Indian” diaspora“both” have acknowledged in mid-2021 that ABA / MII is promising initiative
(ii) Vinai Thummalapally, former US ambassador to Belize has said that India’s “global” exports for manufacturing products are presently lower but through ABA/MII program, competitive and also valuable products “all” are to increase India’s “export” growth
(iii) Nisha Desai Biswal, American businesswoman has said that due to lack of clarity about definition of ABA/MII its likely to be counterproductive.
(iv) Freddy Svane, Denmark’s ambassador to India and also Himanshu Gulati Member of Parliament (MP) Norway “both” have said that Denmark and Norway can help in India’s ABA/MII for energy-efficient technologies
(v) UK-India Business Council has conducted survey and also found “both” in June 2021 that most of companies are agreed with India’s growth under ABA/MII.
(vi) Kenneth Juster, US ambassador to India has said in January 2021 that India’s thinking for larger economic role in world is not compatible under ABA/MII.
(vii) United States Trade Representative has written in April 2022 in his report on foreign trade barriers in India that USA’s exporters are to encounter “significant” tariff barriers and also non-tariff barriers “both” for USA’s goods/services imports in India under ABA/MII.
(viii) Govt. has pursued ongoing economic reform’s efforts through promoting some programs for increasing India’s self-sufficiency by promoting “domestic” industries, “reducing” reliance on “foreign” suppliers and also imported goods / services like:
(a) Make in India (MII) in 2014
(b) Atmanirbhar Bharat Abhiyan (ABA) in 2020
(ix) Chief Executive of Lockheed Martin India has said in July 2020 that companies are committed to support Prime Minister Narender Modi’s vision under ABA/MII.
Chapter-IV- Production Link Incentive (PLI) Scheme
34. What is PLI scheme?
(i) PLI Scheme is govt.’s initiative to boost “domestic” manufacturing by providing financial incentives to companies for their “incremental” sales from products manufactured in India.
(ii) PLI scheme to include certain objects like:
(a) For attracting domestic and foreign “both” investments
(b) For encouraging “domestic” manufacturing
(c) For “increasing” exports
(d) For “decreasing” imports
35. What is PLI computation?
- PLI scheme is offering “financial” rewards to companies for “incremental” sales from “domestic” manufacturing
36. What is Attracting investments?
- PLI scheme is attracting “domestic and foreign” companies for setting and also expanding their manufacturing in India.
37. What is Encouraging local manufacturing?
(i) PLI scheme is encouraging “domestic” manufacturing by providing “financial” rewards to companies for “incremental” sales from “domestic” manufacturing
(ii) PLI scheme is encouraging for investing in “advanced” technologies, improving efficiencies and also achieving “volume” productions “all”
38. What is Enhancing exports?
- PLI scheme is enhancing India’s manufacturing and also exports volumes “both” for strengthening India’s ranking in global markets.
39. What are financial incentives?
- Companies are permitted to receive “financial” incentives on “incremental” sales for 14 “eligible” products varying from 4% to 7%
40. What are Eligible criteria?
- Companies are required to satisfy “specific” criteria like:
(i) Investments’ amount
(ii) Productions’ quantity
(iii) Sales’ amount
41. What is Project Management Agency (PMA)?
- PLI scheme is being managed by designated PMAs for monitoring implementations and also incentives disbursements “both”
42. What is Enhancing manufacturing capabilities?
- PLI scheme is strengthening India’s manufacturing ecosystem by encouraging investments and also “domestic” productions “both”
43. What is Promoting Technological Advancements (PTAs)?
- PLI scheme is encouraging innovations like:
(i) For creating environment
(ii) For encouraging developments
(iii) For implementing “new” ideas
(iv) For implementing “new” processes
(v) For implementing “new” products.
(vi) For nurturing mindset about embracing changes
(vii) For nurturing mindset about experimentations
(viii) For nurturing mindset about calculated risk-taking
(ix) For providing necessary resources / support about innovations
44. What is Creating employment opportunities?
- PLI scheme is generating employment opportunities in manufacturing sector
45. What is Reducing import dependences?
- PLI scheme is “decreasing” imports and “increasing” domestic productions “both”.
46. What is Attracting Foreign investments?
- PLI scheme is attracting “significant” FIs for manufacturing sector in India
47. What is Enhancing global competitiveness?
- PLI scheme is enhancing “global” competitiveness by volume / “mass” productions in India.
Chapter-V-PLI Scheme by Ministry of Communications
Chapter-V(A) – Introduction
48. What is Background?
(i) PLI Scheme is implemented for promoting Telecom and Networking Products manufacturing in India notified vide notification 13-01/2020–IC dated Feb 24, 2021.
(ii) PLI Scheme’s guidelines are formulated in accordance with clause 7 of notification 13–01/2020–IC dated Feb 24, 2021.
(iii) PLI Scheme’s guidelines are finalized “after” consultation with stakeholders for certain subjects like:
(a) Definitions
(b) Qualifications and also eligibilities “both”
(c) Investments for determining eligibility
(d) Applications and also online portal “both”
(e) Project Management Agency (PMA), Empowered Group of Secretaries (EGoS) and also Competent Authority “all”
(f) PLI’s approval and also baseline’s determination “both”
(g) Calculations and also incentives’ disbursement “both”
(iv) PLI Scheme is applicable from April 01, 2021.
(v) PLI Scheme is applicable for investments and also sales “both” made in accordance with PLI Scheme guidelines for computing “eligible” PLI.
Chapter-V(B) – Definitions
49. What are permitted applicants?
(i) Applicants are to include “companies” incorporated in India under Companies Act (CA) 2013 for manufacturing goods covered under Scheme Target Segments (STSs)
(ii) Applicants are required to make applications for approvals under PLI Scheme
(iii) Applicants are permitted to setup “new” manufacturing units covered under STSs
(iv) Applicants are permitted to use “existing” manufacturing units covered under STSs
(v) Applicants are required to carry manufacturing at 1 or more than 1 location in India with intimation to Department of Tele-communication (DoT).
50. What are Not permitted applicants?
(i) Applicants are not permitted those bank accounts are declared as Non-Performing Assets (NPAs) by banks / financial institutions / NBFCs / etc. in accordance with RBI’s guidelines
(ii) Applicants are not permitted those bank accounts are declared as wilful defaulters by banks / financial institutions / NBFCs / etc. in accordance with RBI’s guidelines
(iii) Applicants are not permitted those bank accounts are declared as frauds by banks / financial institutions / NBFCs / etc. in accordance with RBI’s guidelines
(iv) Applicants are not permitted those insolvency proceedings are admitted in National Company Law Tribunal (NCLT) / etc.
51. What are MSMEs?
- MSMEs to include “companies” those are registered as Micro, Small & Medium Enterprises (MSME) with Ministry of MSME, Government of India
52. What are non-MSMEs?
- Non-MSMEs to include “companies” those are not registered as MSME with Ministry of MSME, Government of India
53. What are Domestic companies?
(i) Domestic companies to include “companies” those are owned by Resident Indian Citizens (RICs) and also owned more than 50% capital by RICs “both”
Or
(ii) Owned by Indian Companies (ICs), “ultimately” owned and also controlled “all” by RICs in accordance with’s FDI Policy 2020.
54. What are Global companies?
- Global companies to include “companies” those are not domestic companies and also have business in 1 / in more than 1 countries by themselves / by group companies “both”
55. What are applications?
- Applications are required to submit under PLI Scheme by applicants to PMA/DoT in accordance with application form “specified” containing requisite information’s, supporting documents and also application fee “all”
56. What are Applications’ acknowledgements?
- PMA is required to mention dates as acknowledgements for application’s submission by applicants
57. What are Applications’ approvals?
- PMA is required to mention dates as approvals in accordance with approval issued by Competent Authority (CA)
58. What are Applications’ windows?
(i) Application windows are required to open for applications from opening’s date as notified by DoT
(ii) Application forms are required to submit on DoT’s portal like https://www.phtelecom.udyamimitra.in
59. What is Base year?
(i) Financial year ending on March 31, 2020 is required to treat as base year for computing “incremental” sales of goods manufactured in India “after” tax’s deduction e. GST
(ii) Baseline information’s for “total” sales of goods manufactured in India are required to obtain for computing and also verifying “incremental” sales over and above base year “both”
60. What is Competent Authority (CA)?
- DoT is required to notify CA
61. What are Eligible investments?
(i) Eligible investments are required for computing “incremental” investments made from April 01, 2021 to March 31, 2025 (4 years)
(ii) Applicants are required to provide certificates as obtained from Statutory Auditors in “specified” format for investments made up to March 31, 2021
62. What are Eligible products?
- Applicants are required to manufacture “eligible” products in India in accordance with Annexure-1 of STSs and also approvals “both”
63. What are employments?
(i) Applicants are required to compute employments based on Job created by them in India and those are “directly” involved in production process and involved in related “activities” commencing from material’s entry point for production facilities and also ending at manufactured goods leaving production facilities “all”
(ii) Employments are required to include certain modes like:
(a) Contractual employees
(b) Apprentice employees
(c) Outsourcing employees
64. What are Empowered Group of Secretaries (EgoS)?
(i) EGoS are committee chaired by Cabinet Secretary and published in official gazette of India by Department for Promotion and Industry and Internal Trade vide ORDER P 36017/144/2020-Investment Promotion dated June 10, 2020 “both”
(ii) EGoS are required to monitor PLI Scheme and to undertake “periodic” reviews “both” for outgo under PLI Scheme and also to take “appropriate” actions for ensuring that expenditures are within “prescribed” outlay as approved by Govt.
65. What is financial year?
- Financial year is commencing from April 01 and also ending to March 31 of following year “both”.
66. What are Force majeures?
- Force majeures are required for computing days / periods involved in “extraordinary” events / circumstances beyond human control i.e. act of God / certain events like:
(i) Corona
(ii) War
(iii) Strike
(iv) Public health emergency
(v) Riots
(vi) Crimes
67. What are Not force majeures?
- Force majeures are not required for computing days / periods not involved in “extraordinary” events / circumstances beyond human control i.e. act of God / certain events like:
(i) Negligence
(ii) Wrong-doings
(iii) Predictable / seasonal rains
(iv) Other “if any”
68. What are Global manufacturing revenues?
- Global manufacturing revenues are required to compute “Consolidated” manufacturing revenues in India and outside India for applicants and also group companies “all” from electronics, telecom and networking segments for base year i.e. from April 01, 2019 to March 31,2020 (1 year)
69. What are Group companies?
- Group companies are treated when minimum 2 enterprises directly / indirectly are in position to exercise certain powers in other enterprise like:
(i) Powers to exercise minimum 26% voting rights in other enterprise
Or
(ii) Power to appoint more than 50% member of Board of Directors (BoDs) in other enterprise
70. What are Investments?
- Investments are required to treat when investments for STSs and also capitalized in applicants’ books of accounts “both”
71. What are Capital expenditures?
- Capital expenditures are to include certain items like:
(i) Plants
(ii) Machineries
(iii) Equipment
(iv) Associated Utilities
(v) Tools
(vi) Dies
(vii) Moulds
(viii) Jigs
(ix) Fixtures
(x) Parts, accessories, components and also spares “all” used in items mentioned under para (i) to (ix)
(xi) Designs used in manufacturing, assembly, testing, packaging and also processing “all” for goods covered under STSs
(xii) Expenditures incurred on packaging, freight, transport, insurance, erection, commissioning for plant, machinery, equipment and also associated utilities “all”
(xiii) Associated utilities to include captive power, effluent treatment plants, essential equipment required in operations areas e. clean rooms, air curtains, temperature, air quality control systems, compressed air, water & power supply and also control systems “all”
(xiv) Associated utilities also to include IT, ITES infrastructure for manufacturing e. servers, software and also ERP solutions “all”.
(xv) Other expenditures to include civil works associated with installation, erection of plants, machineries, equipment and also associated utilities “all”
(xvi) Expenditures are also to include 100% non-creditable taxes and also duties “both”
72. What is R&D expenditure?
- R&D expenditures are to include certain items like:
(i) Expenditures incurred in-house R&D and also within group entities “both”
(ii) Expenditures incurred attributable to goods covered under STSs
(iii) Expenditures incurred at 100% stages in complete value chain of goods for “proposed” manufacturing and also software integral to functioning “both”
(iv) Expenditures incurred on testing, measuring instruments and also prototypes used for:
(a) Testing
(b) Design tools’ purchases
(c) Software cost directly used in R&D
(d) License fees
(e) Expenditure on technology
(f) IPRs
(g) Patents
(h) Copyrights
(v) 100% non-creditable taxes and also duties “both” are to include for eligible R&D expenditures
(vi) Manpower expenses are not to include for eligible R&D expenditures
(vii) Maximum expenses for R&D are limited as specified in PLI guidelines
73. What are Transfer of Technology (ToT) expenditures?
(i) ToT expenditures are permitted e. initial technology’s cost and also initial technology’s purchases “both” for goods covered under STSs
(ii) 100% non-creditable taxes and also duties “both” are to include for ToT
(iii) Maximum expenses for ToT are limited as specified in PLI guidelines
74. What are Expenditures on land and building?
(i) Expenditures for land and also building “both” are not permitted for computing investments in projects / units under PLI guidelines
(ii) Expenditures for civil works associated with installations and erections for plants, machineries, equipment and also associated utilities “all” are permitted for computing investments in projects / units under PLI guidelines
75. What are Manufactures?
(i) Manufactures are defined in accordance with Central Goods and Service Tax (CGST) Act, 2017
(ii) Manufactures are to include processing for raw materials / inputs for converting into “new” products with distinct names, characters and also use “all”
76. What is Net “Incremental” Sales?
(i) Net “incremental” sales are to include differences between sale for manufactures goods in India under STSs and in base year e. March 31, 2020
(ii) Net “incremental” sales are not to include sale for “traded” goods in India
77. What are Net Sales?
- Net sales are to compute based on certain computations like:
(i) Gross sales –(minus) credit notes as defined in CGST Act, 2017 –(minus) taxes as applicable for goods manufactures in India under STSs in accordance with books of accounts prepared and also disclosed to GST authorities “both”
(ii) Gross sales are not to deduct certain discounts like:
(a) Cash discounts
(b) Volume discounts
(c) Target discounts
(d) Other discounts
78. What is Project Management Agency (PMA)?
- PMA is to include agency as appointed by DoT for acting on behalf of DoT for performing certain actions:
(i) Applications’ receiving and also appraising “both”
(ii) Baselines’ determinations
(iii) Eligibilities’ verifications
(iv) Disbursements’ verifications through “appropriate” methods / documents
(v) Monitoring in accordance with PLI guidelines
79. What are Related Parties?
(i) RPs are defined in Accounting Standard (AS) 18 under head Related party disclosure
Or
(ii) RPs are defined in Indian Accounting Standard (Ind AS) 24 under head Related party disclosure as may be applicable to applicants being notified by Ministry of Corporate Affairs (MCA) / any other authority from time to time
80. What are Scheme Target Segments (STSs)?
- STSs are specified in Annexure-1 of PLI Scheme for Telecom and Networking Products
81. What is Self-certified document?
- To include documents as certified by designated signatory for applicant companies duly authorized by BoDs
82. What is Successor-in-Interest?
- To include new / re-organized entity formed “after” certain act where change in shareholding is directly / indirectly minimum for 10% in companies like:
(i) Applicant’s merger
(ii) Applicant’s demerger
(iii) Applicant’s acquisition
(iv) Applicant’s transfer of business
(v) Applicant’s significant change in ownership
83. What is Technical Committee?
- To include committee as constituted by Competent Authority.
84. What are Traded goods?
(i) To include goods where processing for raw materials / inputs is not carried and also treated as traded goods “both” by applicant companies
(ii) To include goods were purchased and sold without value addition and also treated as traded goods “all” by applicant companies
Chapter-V(C) – Eligibility criteria
85. What are Eligibility’s criteria?
(i) Govt. is permitted through certain Ministries for supporting to companies under PLI Scheme for manufacturing of goods in India
(ii) PLI Scheme is permitted for Scheme Target Segments (STSs)
(iii) FIs by Non-Residents (Non-RoI) are permitted in PLI’s scheme through companies in accordance with PLI Scheme’s guidelines for telecom and networking products based on FDI’s policy 2020 as amended and also effective from time to time “both”.
(iv) Applicant companies are required to ascertain in accordance with qualification criteria for Global manufacturing companies’ revenues as defined in PLI Scheme guidelines.
86. What are Global companies’ criteria?
(i) Global manufacturing companies’ revenues are required to exceed INR 10,000 crore in base year e. financial year ending on March 31, 2020
(ii) Global manufacturing companies are required to convert respective currencies into INR based on average of currencies “exchange” rates as on April 01, 2019 and March 31, 2020 where revenues for base year are not consolidated in INR.
87. What are Domestic companies’ criteria?
- Domestic manufacturing companies’ revenues are required to exceed INR 250 crore in base year i.e. financial year ending on March 31, 2020.
88. What are MSME companies’ criteria?
- MSME manufacturing companies’ revenues are required to exceed INR 10 crore in base year i.e. financial year ending on March 31, 2020.
89. What is MCII?
(i) Applicant manufacturing companies are required to obey Eligibility Threshold Criteria’s (ETCs) for minimum Cumulative Incremental Investment (CII) during “current” year under consideration
(ii) Also required to obey for “Incremental” sale against permissible manufactured goods covered under STSs over and above during “base” year e. financial year ending on March 31, 2020
90. What are Eligibility Threshold Criteria’s (ETCs)?
(i) Applicant manufacturing companies are required to obey ETCs for PLI’s disbursement during “current” year under consideration
(ii) ETCs are available in Annexure-2 of PLI guidelines
91. What is Not permitted?
- Applicant manufacturing companies are not permitted for PLI in particular year when ETCs are not satisfied in particular year in accordance with Annexure-2 of PLI guidelines
92. What is Carryover?
- Applicant manufacturing companies are not permitted to carryover PLI when ETCs are not satisfied in particular year in accordance with Annex-2 of PLI guidelines
93. What is Subsequent year?
- Applicant manufacturing companies are permitted for PLI in subsequent year when ETCs are satisfied in subsequent year in accordance with Annexure-2
94. What is Net “Incremental” investments?
(i) Applicant manufacturing companies are required for computing “cumulative” values for investments made from April 01, 2021 to last year and also investments made in current year under consideration “both” for determining “incremental” investments’ eligibility in current year
(ii) Applicant manufacturing companies are permitted for PLI “annually” beside 100% committed investments are made in less than 4 years based on “annual” threshold investments communicated in approvals’ letters issued by govt. through ministry.
95. What is Net “Incremental” sales?
(i) Applicant manufacturing companies are required for computing Net “Incremental” Sale (NIS) for manufacture goods covered under STSs for any year
(ii) NIS for manufacture goods covered under STSs are considered for any 1 year over and above “base” year e. financial year ending on March 31, 2020
96. What is Ineligible?
(i) Applicant manufacturing companies are treated ineligible for PLI Scheme available under Department of Telecommunication (DoT) when they have already applied / availed under “any other” PLI Scheme implemented by Central govt. of India
(ii) Applicant manufacturing companies are not treated ineligible for PLI Scheme available under DoT when they have applied / availed under “any other” PLI scheme implemented by State / Union Territory (UT) Govts.
97. What are Eligible MSMEs?
- Applicant manufacturing companies under MSMEs are permitted for PLI Scheme when MSME manufacturing companies’ revenues are exceeding 10 crores.
98. What is MSME’s status?
(i) Applicant manufacturing companies are required to accept MSME status as determined at selection’s time by govt. through respective ministry.
(ii) MSME status as determined at selection’s time by govt. through respective ministry is required to continue during entire 5 years’ duration for PLI Scheme beside MSME is become non-MSME during within 5 years’
99. What is DoT’s financial allocation for MSME?
- DoT’s maximum financial allocation for 100% MSME categories are permitted INR 1000 crores for maximum 5 years.
Chapter-V(D)- Eligible Investments
100. What are Eligible investments?
(i) Eligible investments are defined in PLI Scheme’s guidelines made on / after April 01, 2021.
(ii) Not eligible investments are expenditures incurred on consumables and also raw materials “both” used for products’ manufacturing.
(iii) Eligible investments are treated from tax invoice’s date for expenditures on investments.
(iv) Eligible investments are treated when permissible head for investments is capitalized in books of accounts for claiming PLI in any 1 year.
101. What are Expenditures on plant, machinery and equipment?
(i) Expenditure incurred on plants, machineries and also equipment “all” are defined in PLI Scheme’s Guidelines for computing investments.
(ii) Applicant companies are required to purchase / lease plants, machinery and also equipment “all” in their names
(iii) (a) Applicant companies are required to have financial lease within meaning as defined in Accounting Standard (AS)-19 – Leases
Or
(b) Defined in Indian Accounting Standard (Ind AS) 116 – Leases
(iv) Not eligible investments on plants, machineries and equipment are treated when these are obtained by applicant companies from group companies located in India and also their core business is not financing / equipment leasing
(v) (a) Eligible investments on plants, machineries and also equipment are permitted when used / refurbished under Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2018 where minimum residual life is 5 years.
(b) Value for plants, machineries and also equipment are required to consider at lower of cost / depreciated value computed in accordance with scale of depreciation fixed by Customs beside these are imported / not imported.
(vi) (a) Applicant companies are required to obtain appropriate undertakings from person having custody of equipment / components and also valid legal agreements “both” when these are located outside premises
(b) Applicant companies are not permitted custody of equipment / components located outside India
(vii) Plant, machineries and also equipment are required to procure / lease through legally valid documents “after” payments of applicable taxes / levies.
(viii) Plant, machineries and also equipment are required to use for manufacturing of goods under STSs duly approved by approval letter issued by PMA.
(ix) Applicant companies are required to submit declaration for machinery’s uses for “each” year when claiming PLI in accordance with PLI Scheme’s guidelines.
(x) PMA is permitted to rely on certificates issued by Chartered Engineer / valuer registered with Insolvency & Bankruptcy Board of India (IBBI) and also valuation considered in accordance with Customs Rules when these are applicable for determining cost’s reasonableness.
102. What is Research and Development (R&D)?
(i) Eligible investments are treated for expenditures incurred on R&D as defined in PLI Scheme’s guidelines for determining eligible investments.
(ii) Applicant companies are required to submit certificates obtained from Statutory Auditors for certain expenditures incurred on products’ manufacturing under PLI Scheme’s guidelines like:
(a) Cost of technology
(b) Intellectual Property Rights (IPRs)
(c) Patents and also copyrights “both”
(iii) (a) Eligible investments are treated for expenditures incurred on software associated with R&D procured / licensed through legally valid documents “after” payment of applicable taxes / duties.
(b) Applicant companies are required to obtain certificates from Statutory Auditors for expenditures incurred on software associated with R&D
(iv) Applicant companies are not permitted to incur expenditures on R&D when these are exceeding 15% of total committed investments under STSs
10.3 What are Transfer of technology agreements?
(i) Eligible investments are treated for expenditures incurred on Transfer of Technology (ToT) for computing eligible investments under PLI Scheme.
(ii) Eligible companies are required to submit ToT agreements for computing eligible investments under PLI Scheme.
(iii) Eligible companies are required to obtain certificates from Statutory Auditors for ToT’s expenditures
(iv) Eligible companies are not permitted to incur expenditures on ToT when these are exceeding 5% of total committed investments under STSs
104. What are Associated utilities?
(i) Eligible investments are treated for expenditures incurred on associated utilities for computing eligible investments under PLI Scheme
(ii) (a) Eligible companies are not permitted to exceed rates specified in CPWD schedule for associated utilities “if available”
Or
(b) Eligible companies are not permitted to exceed valuations made by Chartered Engineer
(iii) Eligible companies are required to obtain certificates from Statutory Auditors for expenditures incurred on associated utilities
105. What are Related party transactions?
(i) Eligible companies are required to carry 100% Related Party Transactions (RPTs) in accordance with Accounting Standard (AS) 18
(ii) Eligible companies are also required to carry 100% RPTs in accordance with Arm Length Principle (ALP) as defined under Income Tax Act (ITA) 1961
106. What is PMA’s role?
(i) PMA is permitted to rely on certificates obtained from Statutory auditors / Chartered engineers / valuers / etc. and also submitted by applicant companies
(ii) Eligible companies are required to borne cost for certificates and also claim processes “both”
Chapter-V(E)- Applications
107. What is Introduction?
(i) Applicant companies are required to submit applications from PLI Scheme opening’s date as notified by DoT on https://www.plitelecom.udyamimitra.in
(ii) Competent Authority is permitted to accept applications and also to issue acknowledgement “both” on https://www.plitelecom.udyamimitra.in
108. What is Competent authority’s role?
(i) Competent authority is permitted to invite new applications anytime during PLI Scheme’s tenure.
(ii) Applicant companies are permitted to submit applications to PMA on PLI Scheme’s online portal.
(iii) PMA is required to issue acknowledgement for applications’ receipts
(iv) PMA is not promising for PLI’s claim acceptance “after” issuing acknowledgement for application’s receipts
(v) PMA is permitted to carry “initial” scrutiny “after” issuing acknowledgement for application’s receipts for ascertaining that information’s, documents, certificates and also proof for application fee’s deposit “all” are submitted
(vi) PMA is permitted to intimate to applicant companies for deficiency “if any” found “after” initial scrutiny for rectification by applicant companies within stipulated timeline.
(vii) PMA is permitted to declare ineligible for PLI Scheme when deficiency is not rectified / removed within stipulated timeline.
(viii) PMA is required to recommend to DoT for issuing approval by Competent Authority “after” initial scrutiny and also deficiency’s rectification “both”
(ix) PMA is required to ensure for committed investments and also estimated “Incremental” Net Manufacturing Sales
(x) PMA is required to issue “approval” letters to applicant companies in accordance with specified format “after” receiving approval from DoT
(xi) PMA is not required to refund application fee when application is rejected
(xii) PMA is required to accept application fee electronically “only”
109. What is Applicant companies’ role?
(i) Applicant companies are permitted to submit 1 application for 1 product under STSs
(ii) Applicant companies are “also” permitted to submit more than 1 applications for more than 1 products under STSs
(iii) Applicant companies manufacturing with “domestic” technology are encouraged for applying under STSs
(iv) Applicant companies are required to submit applications in specified format and also in accordance with process mentioned in PLI Scheme’s guidelines “both”
(v) Applicant companies are not permitted to submit applications “after” application window’s closure except specifically permitted by Competent Authority
Chapter-V(F)– Online Portal
110. What is Online portal?
(i) 100% applications are required to submit through online portal to PMA
(ii) PMA is required to issue unique application ID to applicant companies for 100% future’s activities and also future’s correspondence “both”
(iii) DOT is permitted to issue detailed instructions for using online portal under PLI Scheme.
Chapter-V(G)– Project Management Agency (PMA)
111. What is Introduction?
(i) DoT is permitted to implement PLI Scheme through Project Management Agency (PMA). Hence DoT is authorized to appoint PMA.
(ii) PMA is required for providing certain services like:
(a) Secretarial services
(b) Managerial services
(c) Implementing services
(d) Supporting services
(e) Carrying services
112. What is PMA’s role?
- PMA is responsible for certain activities like:
(i) Issuing applications receipt’s acknowledgements
(ii) Scrutinizing applications within stipulated timelines.
(iii) Ascertaining baseline for Net Sales of Manufactured Goods and Investments for eligible applicants and also making “appropriate” recommendations to Competent Authority “all”
(iv) Verifying thresholds of committed investments for determining eligibility for incentive’s disbursements.
(v) Examining claims for incentive’s disbursements and also making “appropriate” recommendations to Competent Authority “both”.
(vi) Verifying “reconciliation” of claims’ disbursements with specified documents.
(vii) Compiling data for progress and PLI Scheme’s performance through Quarterly Review Reports (QRRs) and also other information’s / documents “all”.
(viii) Deciding “eligibility” to receive incentives based on “incremental” investments and “Incremental” sales “both” e. document based verification and also involving selective physical verification / inspection by PMA / suitable agency in accordance with operating procedures decided by DoT / PMA
113. What is Additional information’s?
- PMA is permitted for asking “additional” information’s, details and also documents “all” from applicant companies as considered necessary.
Chapter-V(H)– Empowered Group of Secretaries
114. What is Empowered Group of Secretaries?
- Empowered Group of Secretaries (EGoS) is permitted for monitoring PLI Scheme, undertaking “periodical” review for payments made under PLI Scheme and also taking “appropriate” actions “all” for expenditures incurred within specified limit approved by govt. of India like:
(i) EGoS are permitted for undertaking “periodical” review for certain criteria like:
(a) Investments made for availing PLI Scheme
(b) Employment generated for availing PLI Scheme
(c) Production made for availing PLI Scheme
(d) Value addition made for availing PLI Scheme
(ii) EGoS are permitted for revising certain criteria / targets like:
(a) Revising PLI’s rates
(b) Revising ceilings / limits
(c) Revising Scheme Target Segments (STSs)
(d) Revising eligible criteria
(iii) EGoS are permitted for amending certain criteria when Force Majeure Event (FME) is arises like:
(a) Amending PLI Scheme’s clauses
(b) Modifying PLI Scheme’s clauses
(c) Withdrawing PLI Scheme’s clauses
115. What is Competent Authority?
(i) Competent Authority is permitted for considering applications recommended by PMA for approvals
(ii) Competent Authority is permitted for seeking “additional” information’s considered necessary for approvals
(iii) Competent Authority is permitted to carry amendments in PLI Scheme’s guidelines
(iv) Competent Authority is permitted for authorizing “any” other person / agency for considering application’s approvals and also claim’s approvals “both” for PLI.
116. What is Baseline information?
(i) Baseline information’s as on March 31, 2021 are required for computing PLI e. Cumulative “incremental” investments and also Net “incremental” sale of goods manufactured in India like:
(a) Investments as on March 31, 2021
(b) Sales of goods manufactured in India covered under STS e. from April 01, 2019 to March 31, 2020 (1 year)
(ii) (a) Eligible companies are required to submit information’s / documents at their own cost for establishing baseline
(b) Establishing baseline is not limited to Statutory Auditor Certificate (SAC) and also returns furnished to several Ministries / Departments / Agencies / PMA “both”
(iii) Competent Authority is required to consider applications for approvals based on baseline information’s like:
(a) Cumulative “incremental” investments
(b) Net “incremental” sales of goods manufactured in India
(c) Cumulative “Committed” investments
(d) Maximum “eligible” sales made during PLI Scheme period as ascertain and also recommended by PMA “both”.
117. What is PMA’s role for approval under PLI?
(i) PMA is required to scrutinize received applications “after” issuing acknowledgements
(ii) PMA is required to carry “initial” scrutiny against received applications
(a) PMA is required to send recommendations for approvals to DoT for eligible companies with baseline information’s like:
(b) Cumulative “incremental” investments
(b) Net “incremental” sales of goods manufactured in India
(c) Cumulative “Committed” investments
(d) Maximum “eligible” sales made during PLI Scheme period as ascertain and also recommended by PMA “both”.
118. What is DoT’s role for approval under PLI?
(i) DoT is required to carry “final” scrutiny and also to approve eligible companies’ applications “after” obtaining approval from department of respecting Minister in charge.
(ii) (a) DoT is required to grant approvals to 10 eligible applications “each” from MSME and also non-MSME “both” categories
(b) DoT is required to grant approvals to minimum 3 eligible “domestic” companies out of 10 applications for non-MSME category.
119. What is DoT’s role for selection under PLI?
- DoT is required to select 1 application out of 2 applications when 2 applications are in excess of limit specified under PLI Scheme under certain criteria like:
(i) Highest to lowest based on committed “cumulative” investments in scheme period for MSMEs category
(ii) Highest to lowest based on committed “cumulative” investments in scheme period for non-MSMEs category
(iii) Highest to lowest based on committed “cumulative” investments in “global” manufacturing revenues when minimum 2 applicants are existed with “same” levels / figures
(iv) (a) DoT is required to grant approvals to 10 eligible applications “each” from MSME and also non-MSME “both” categories
(b) DoT is required to grant approval to minimum 3 eligible “domestic” companies out of 10 applications for non-MSME category.
(vi) (a) DoT is required to select 100% applicants based on total PLI for maximum eligible sales e. 12,195 crore in 5 years
(b) DoT is required to reduce applicants’ number when total PLI is exceeding 12,195 crore in 5 years for maximum eligible sales
(vi) DoT is required to select “additional” applicants when total PLI is not exceeding 12,195 crore in 5 years for maximum eligible sales
120. What is PMA’s role for selection under PLI?
- PMA is required to send letters for communicating to applicant companies “after” receiving approvals from DoT with certain information’s like:
(i) Applicant’s name
(ii) Applicant’s category
(iii) Eligible Product(s)
(iv) Acknowledgement’s date
(v) Approval’s date
(vi) Thresholds for Committed “Cumulative” Investments and also Net “Incremental” Sales of Goods Manufactured in India “both” covered under STS for determining eligibility.
(vii) Baseline for eligible investmentse. as on March 31, 2021
(viii) Baseline for Net Sales of Goods Manufactured in India covered under STS from April 01, 2019 to March 31, 2020 (1 year)
(ix) Total Ceiling for PLI for entire Scheme period e. 5 years
(x) Other information’s / conditions “if any” stipulated by DoT
121. What is Companies’ role for PLI’s calculations?
- Eligible companies are required to compute PLI based on net “incremental” sales for eligible product(s) x (multiple) PLI’s rate applicable for “respective” year like:
(i) When eligible product(s) are stated in approval
(ii) When net “incremental” sales for eligible product(s) are adjusted with sale returns when claims for sale returns / other matter is accepted through credit notes issued in current year / “next” year
(iii) When annual ceiling for PLI is matched with PLI Scheme notified on Feb 24, 2021
122. What is Companies’ role for PLI’s disbursements?
(i) Eligible companies are required to submit claims for PLI’s disbursements to PMA
(ii) Eligible companies are required to ensure that claims are 100% complete and also supported with 100% documents “both” required in accordance with format specified in PLI Scheme
(iii) Eligible companies are required to submit claims for PLI’s disbursements “after” end of financial year
(iv) Eligible companies are not permitted to submit claims for PLI’s disbursements “after” 9 months from end of financial year e. not permitted “after” Dec 31
(v) Eligible companies are required to submit “reconciliation” statements in specified format as on March 31 “every” financial year in scheme period and also to submit maximum by Jan 15 “both” e. maximum permitted period to submit is in 9.5 months like:
(a) Reconciliation statements for total “incremental” investments
(b) Reconciliation statements for net “incremental” sales for eligible goods manufactured in India.
(vi) (a) Eligible companies are required to reimburse to DoT for “excess” claims disbursed by DoT
(b) Eligible companies are required to pay interest based on 3 years MCLR prevailing rate on disbursement’s date and also to compound “annually” both
(c) Eligible companies are required to pay interest for period between “excess” payment and refund’s date
123. What is PMA’s role for PLI’s disbursement?
(i) PMA is required to examine for disbursing PLI’s claims submitted by eligible companies
(ii) PMA is required to verify for eligibility, assessing PLI payable to eligible companies based on methods prescribed in PLI Scheme’s guidelines and also approval letters issued by DoT “all”
(iii) PMA is permitted to verify 100% documents submitted by eligible companies
(iv) PMA is not required to rely on SAC and also returns submitted to several ministries / departments / agencies for PLI’s disbursements.
(v) PMA is permitted to examine “end” realizations, settlements / payments in accordance with sales, investments through examining SAC, bank statements and also etc. “all” when considered necessary.
(vi) PMA is permitted to refer to DoT for clarifying when observed any doubt for determining eligibility, PLI’s amount, any other matter for discharging duties and also responsibilities “all”
(vii) PMA is required to process for PLI disbursement’s claims and also to make “appropriate” recommendations to DoT “both”.
(viii) PMA is required to verify “reconciliation” documents/certificates and also to recommend PLI’s disbursements “both” for “balance” eligible PLI’s claims to DoT
(ix) PMA is required to furnish certain information’s to DoT on “quarterly” basis like:
(a) Details for PLI’s disbursement claims received
(b) Details for amount disbursed / recommended
(c) Details for reasons for rejections / delays in PLI’s recommendations
(x) PMA is required to submit “consolidated” budgetary requirements “annually” to DoT.
(xi) (a) PMA / Competent Authority is permitted to ask eligible companies for refunding PLI, interest calculated at 3 years SBI MCLR prevailing on disbursement date and also to compound “annually” all when satisfied that eligibility under PLI scheme / PLI’s disbursements is obtained by eligible companies through mis-representation for “essential” facts / furnished false information’s
(b) PMA is required to provide opportunity of being heard to eligible companies
124. What is DoT’s role for PLI’s disbursement?
(i) DoT is permitted for taking “final” decisions when PMA has referred to DoT for clarifying when observed any doubt for determining eligibility, PLI’s amount, any other matter for discharging duties and also responsibilities “all”
(ii) DoT is required to consider for PLI disbursement’s claims as examined and also recommended “both” by PMA
(iii) DoT is required to disburse amounts “after” completion for 100% “pre-disbursal” formalities by eligible companies and also approval by DoT “both”
(iv) DoT is permitted to disburse maximum 85% for PLI disbursement claims when “reconciliation” certificates are not submitted.
(v) DoT is required to disburse PLI’s claims via Direct Bank Transfer (DBT) through PEMS.
(vi) DoT is required to disburse PLI’s “balance” claims to eligible companies based on Competent Authority’s approvals.
(vii) DoT is required to make “budgetary” provisions for PLI’s
125. What is DoT’s role for review and monitoring?
(i) DoT’s constituted Steering Committee (SC) is required “periodically” to review for monitoring progress of eligible companies for certain criteria like:
(a) Total “incremental” investments in India by eligible companies
(b) Net “incremental” employments generations in India by eligible companies
(c) Net “incremental” goods manufactured in India by eligible companies
(d) Net “incremental” value additions under PLI Scheme in India by eligible companies
(ii) (a) DoT’s constituted Technical Committee (TC) is required to provide “technical” assistance to PMA / DoT / EGoS for discharging their functions
(b) DoT’s constituted TC is required to give comments on “technical” matters referred by PMA/DoT
(iii) DoT is required to consider PLI’s claims when 100% QRRs for particulars financial year are submitted by eligible companies within prescribed timelines.
126. What is Eligible companies’ role for review and monitoring?
- Eligible companies are required to furnish “self-certified” Quarterly Review Reports (QRRs) in specified formats within 30 days from end of “each” quarter in format prescribed in PLI Scheme guidelines
Chapter-V(I)– Conclusions
127. What is Eligible companies’ role for change in criteria?
(i) Eligible companies are not permitted to claim PLI through sales’ diversion from group companies / existing units’ closure in India for claiming “higher” PLI
(ii) Eligible companies are required to submit “suitable” declarations for not claiming PLI on “same” manufactured items through more than 1 applicants
(iii) Eligible companies are required to submit latest shareholding pattern to PMA and also “annual” PLI claimed “both” when changes are made in shareholding pattern during year “after” updating with Registrar of Companies (RoC)
(iv) Eligible companies are required to submit 1st and 2nd undertakings based on CVC’s suggestions duly signed by CEO / MD / Director along with designation and also authorizations to submit undertakings “all”.
128. What is Competent Authority’s role for change in criteria?
(i) Competent Authority is required to receive details from PMA for considering PLI’s disbursements against certain changes in shareholding pattern during PLI Scheme’s tenure like:
(a) Change in shareholding pattern leading to successor – in – interest
(b) Change in shareholding pattern from domestic to global / vice-versa
(ii) Competent Authority is required to determine eligibility for eligible companies when successor – in – interest / change in companies’ nature e. from domestic to global / vice-versa is happened like:
(a) Total “incremental” investments in India by eligible companies
(b) Net “incremental” employments generations in India by eligible companies
(c) Net “incremental” goods manufactured in India by eligible companies
(d) Net “incremental” value additions under PLI Scheme in India by eligible companies
129. What is Central vigilance Commission’s role for malpractices?
- Central Vigilance Commission (CVC) has suggested to adopt Integrity Pact (IP) for obtaining certain undertakings from eligible companies for avoiding malpractices in PLI’s disbursements to eligible companies like:
(i) (a) Eligible companies are required to submit 1st undertaking for PLI’s approvals / disbursements
(b) Eligible companies’ claim applications are not processed / considered when 1st undertaking for PLI’s approvals / disbursements are not submitted
(ii) (a) Eligible companies are required to submit 2nd undertaking for confirming compliances’ integrity “after” submitting PLI’s disbursements claims “before” PLI’s funds releases
(b) Eligible companies’ PLI’s disbursements to withheld when 2nd undertaking for PLI’s approvals / disbursements are not submitted
130. What is DoT’s role for PLI’s scheme guidelines?
(i) DoT is permitted to perform 100% functions assigned to PMA
(ii) DoT is required to specify “separate” dates and also timelines “both” for several activities
Chapter-VI-PLI Scheme by Ministry of New and Renewable Energy Ä
131. What is MNRE?
(i) Ministry of New and Renewable Energy (MNRE) govt. of India is “implementing” Production Linked Incentive (PLI) Scheme
(ii) PLI Scheme is National Programme for High Efficiency Solar (HES) PV Modules
(iii) PLI Scheme is achieving manufacturing capacity of Giga Watt (GW) scale in HES PV modules with outlay in Trench-I for INR 4,500 crore and also in Trench-II INR 19,500 crore totalling to 24,000 crore.
(iv) HES PV modules manufacturers are selected through transparent selection
(v) PLI Scheme is having provision for selected HES PV modules manufacturers
(vi) PLI Scheme is available for 5 years “after” commissioning of manufacturing and also sale of HES PV modules “both”.
132. What are Objectives?
- PLI scheme is required to build ecosystem for manufacturing of HES PV modules and also to reduce “import” dependence in Renewable Energy (RE) “both” in India. There are certain other objectives for introducing PLI Scheme like:
(i) Building HES PV modules manufacturing capacity.
(ii) Bringing cutting-edge technology for manufacturing HES PV modules in
(iii) Allowing 100% technologies to obtain better HES PV modules’ performance.
(iv) Promoting setup of integrated plants with better quality control and also competitiveness “both”.
(v) Developing ecosystem to source “local” materials for HES PV modules manufacturing.
(vi) Employing generation and also technological “self” sufficiency “both”.
133. What is Tranche-I?
(i) of India has approved Tranche-I for National Programme on HES PV modules on April 07, 2021
(ii) MNRE has issued PLI Scheme’s on National Programme for HES PV Modules on April 28, 2021 with Tranche-I outlay for INR 4,500 crore.
134. What is Tranche-II?
(i) of India has approved Tranche-II PLI Scheme for National Programme on HES PV Modules on Sep 21, 2022
(ii) MNRE has issued PLI Scheme’s on National Programme for Tranche-II for HES PV Modules on Sep 30, 2022 with Tranche-II outlay for INR 19,500 crore.
(iii) Solar Energy Corporation of India (SECI) being implementing agency on behalf of MNRE for Tranche-II PLI Scheme has issued tender document for selection of HES PV Modules’ manufacturers.
(iv) SECI has issued Letters of Award (LoAs) to 11 bidders in April 2023 for setting 39,600 MW fully / partially integrated HES PV modules’ manufacturing
135. What is 3 years’ timelines?
- 3 years’ timelines are permitted for commissioning of HES PV modules’ manufacturing facilities from sanction’s date like:
(i) Stage-1:
- Manufacturing of Polysilicon from outsourced imported/domestic M.G. Silica
(ii) Stage-2:
- Manufacturing of Ingots-Wafers from Stage-1 Polysilicon
(iii) Stage-3:
- Manufacturing of solar cells from Stage-2 Wafers
(iv) Stage-4:
(a) Manufacturing of Modules from Stage-3 Solar Cells
or
(b) Fully integrated manufacturing of Thin Film plant
or
(c) Fully integrated plant of other technology “if any”
136. What is 2 years’ timelines?
- 2 years’ timelines are permitted for manufacturing of Ingots-Wafers from outsourced Polysilicon from sanction’s date like:
(i) Stage-2:
- Manufacturing of Ingots-Wafers from outsourced Polysilicon
(ii) Stage-3:
Manufacturing of solar cells from Stage-2 Wafers
(iii) Stage-4:
(a) Manufacturing of Modules from Stage-3 Solar Cells
Or
(b) Similar level of integration “other” technology “if any”
137. What is 5 years’ timelines?
- 1.5 years’ timelines are permitted for manufacturing of Ingots-Wafers from outsourced Polysilicon from sanction’s date like:
(i) Stage-3:
- Manufacturing of solar cells from outsourced Wafers
(ii) Stage-4:
(a) Manufacturing of Modules from Stage-3 Solar Cells
Or
(b) Similar level of integration “other” technology “if any”
138. What are partial PLI?
(i) Manufactures are not permitted to obtain PLI until they are able to overcomes their deficiencies when they were failed to meet promised integration / capacity / minimum module performance “after” selection.
(ii) Manufacturers are permitted to obtain PLI from next following month when they have achieved to meet promised integration / capacity / minimum module performance “after” selection
(iii) (a) Manufacturers are not permitted to obtain PLI for “full” 5 years when they were failed to meet promised integration / capacity / minimum module performance “after” selection
(b) PLI for “full” 5 years are not permitted due to interruption for not achieving to meet promised integration / capacity / minimum module performance “after” selection.
(c) PLI for “balance” years are permitted due to interruption for not achieving to meet promised integration / capacity / minimum module performance “after” selection
193. What are Bank’s guarantees?
(i) Bidders-manufactures are required to submit Performance Bank Guarantees (PBGs) at time of signing contract agreement with Indian Renewable Energy Dev Agency Ltd (IREDA) for failure to meet promised integration / capacity / minimum module performance “after” selection
(ii) PBGs are required to forfeit by IREDA when bidders-manufacturers have failed to meet promised integration / capacity / minimum module performance “after” selection
(iii) “Proportionate” PBGs are required to release by IREDA in proportion to failures by bidders-manufacturers
140. What is Proportionate PLI?
- Bidders-manufactures are permitted to receive maximum 95% PLI when they have “actual” PLI’s requirements lower than quoted at time of submitting bids by them.
141. Who are successful bidders – Tranche-I?
| S.No | Name of bidders-manufacturers
|
Extent of Integration | Manufacturing capacity (in MW) | Eligible Capacity (in MW) | PLI (In INR in crore) |
| (i) | Shirdi Sai Electricals Limited | (a) Polysilicon
(b) Ingots-Wafers (c) Cells (d) Modules |
4,000 | 2,000 | 1,875 |
| (ii) | Reliance New Energy Solar Limited | –do– | 4,000 | 2,000 | 1,917 |
| (iii) | Adani Infrastructure Private Limited | –do– | 737 | 368 | 663 |
| Total | 8,737 | 4,368 | 4,455 | ||
- What is Basket-1’s Capacity – Tranche-II?
| For Polysilicon, Ingots–Wafers, Cells and Modules | ||||
| Rank | Name of bidders-manufacturers
|
Manufacturing Capacity (in MW) | Eligible Capacity
(in MW) |
PLI allocated
(in INR in Crore) |
| (i) | Indosol Solar Private Limited | 6000 | 3000 | 3300 |
| (ii) | Reliance New Solar Energy Limited | 6000 | 3000 | 3098.04 |
| (iii) | FS India Solar Ventures Private Limited | 3400 | 1700 | 1177.573 |
| Total | 15400 | 7700 | 7575.613 | |
143. What is Basket-2’s Capacity – Tranche-II?
| For Ingots-Wafers, Cells and Modules | ||||
| Rank | Name of bidders-manufacturers
|
Manufacturing Capacity (in MW) | Eligible Capacity (in MW) | PLI allocated (in INR in Crore) |
| (i) | Waaree Energies Limited | 6000 | 3000 | 1923.24 |
| (ii) | Avaada Ventures Private Limited | 3000 | 1500 | 961.62 |
| (iii) | ReNew Solar (Shakti Four) Private Limited | 4800 | 2400 | 1538.592 |
| (iv) | JSW Renewable Technologies Limited | 1000 | 500 | 320.54 |
| (v) | Grew Energy Private Limited | 2000 | 1000 | 566.71 |
| Total | 16800 | 8400 | 5310.702 | |
144. What is Basket-3’s Capacity – Tranche-II?
For Cells and Modules |
||||
| Rank | Name of bidders-manufacturers
|
Manufacturing Capacity (in MW) | Eligible Capacity (in MW) | PLI allocated (in INR in Crore) |
| (i) | Vikram Solar Limited | 2400 | 1200 | 528.54 |
| (ii) | AMPIN Solar One Private Limited | 1000 | 500 | 139.72 |
| (iii) | TP Solar Limited | 4000 | 2000 | 383 |
| Total | 7400 | 3700 | 1051.26 | |
| Total PLI allocated under PLI Tranche-II | INR 13937.575 Cr. | |||
| Total Manufacturing Capacity allocated under PLI Tranche-II | 39600 MW | |||
Chapter-VII – PLI Scheme’s Statical data Ä
145. What are Achievements?
- PLI Scheme has achieved certain parameters up to Aug 2024 like:
(i) Investments are realised of INR 46 lac crore
(ii) Productions are made of INR 50 lac crore
(iii) Employments are generated of 5 lac
(iv) Exports are made of INR 4 lac crore
146. What is Budget outlay?
- Govt. of India through certain Ministries has allotted budget outlay like:
| S.No. | Sector’s Name | Amount in INR in Crores | Time Duration in years |
| (i) | Large Scale Electronics Manufacturing (LSEM) | 40,995 | 5 |
| (ii) | Auto components | 57,042 | 5 |
| (iii) | Renewable energies – solar PV | 4,500 | 5 |
| (iv) | ACC batteries | 18,100 | 5 |
| (v) | IT Hardware’s | 5,000 | 4 |
| (vi) | Pharmaceutical manufacturing | 15,000 | 5 |
| (vii) | Telecoms and also Networking products “both” | 12,195 | 5 |
| (viii) | Food and also Allied sectors “both” | 10,900 | 6 |
| (ix) | Textiles | 10,683 | 5 |
| (x) | Bulk drugs | 6,950 | 10 |
| (xi) | Steels | 6,322 | 5 |
| (xii) | White goods | 6,238 | 5 |
| (xiii) | Medical devices | 3,420 | 8 |
| (xiv) | Drones and also drone components “both” | 120 | 3 |
| Total | 1,97,465 | ||
147. What are Large Scale Electronics Manufacturing (LSEM)?
(i) LSEM has strengthened e. INR 40,995 crore are allotted for PLI Scheme
(ii) LSEM has flourished e. India is become “net exporter” from “net importer” for mobile phones.
(iii) Productions for mobile phones are increased “significantly” from 8 crore units in financial year ending March 31, 2015 to 33 crore units in March 31, 2024 (9 years)
(iv) Imports for mobile phones are decreased “significantly”.
(v) Exports for mobile phones are increased “significantly” i.e. 5 crore units
(vi) Foreign Direct Investments (FDIs) are increased “significantly” e. 254% from financial year ending on March 31, 2015 to March 31, 2024 (9 years).
148. What are Pharmaceuticals, Medical Devices and Bulk Drugs?
(i) Pharmaceuticals, Medical Devices and also Bulk Drugs “all” have strengthened e. INR 15,000 crore are allotted for PLI Scheme
(ii) Pharmaceuticals, Medical Devices and also Bulk Drugs “all” have strengthened e. India is become 3rd largest player in global market (in volumes).
(iii) Productions for Pharmaceuticals, Medical Devices and also Bulk Drugs “all” are increased “significantly” like:
(a) Productions are increased “significantly” for key bulk drugs e. Penicillin G. Additionally
(b) Productions are increased “significantly” for global companies those have transferred their advanced medical device technology for enabling India to produce “critical” equipment e. CT scanners and also MRI machines “both” locally
(iv) Exports for Pharmaceuticals, Medical Devices and also Bulk Drugs “all” are around 50% of total production in India
(v) Imports for Pharmaceuticals, Medical Devices and also Bulk Drugs “all” are decreased “significantly”
149. What are Automotive industries?
(i) Automotive industries have strengthened e. INR 57,042 crore are allotted for PLI Scheme
(ii) Investments for automotive industries are increased “significantly”
(iii) Productions for high-tech automotive products are increased “significantly”
(iv) Applications for PLI are increased “significantly” e. 115 companies have applied and also 85 companies were approved “both”
(v) FIs for automotive industries are increased “significantly” i.e. 67690 crore received beyond fixed target
150. What are Renewal energies and solar PV?
(i) Renewal energy – solar PV has strengthened e. INR 4,500 crore are allotted for PLI Scheme
(ii) has allotted budget for INR 4500 crore for PLI scheme in Tranche-I
(iii) has allotted budget for INR 19500 crore for PLI scheme in Tranche-II
(iv) Manufacturing capacities are increased “significantly” e. 65GW for fully/ partially integrated solar PV manufacturing in Tranche-II
(v) Employments are increased “significantly”
(vi) Imports are decreased “significantly”
151. What are Telecoms and networking products?
(i) Telecoms and also networking products “both” have strengthened e. INR 12,195 crore are allotted for PLI Scheme
(ii) Imports are decreased “significantly” e. 60% import substitution by manufacturing under PLI Scheme
(iii) Exports are increased “significantly” e. exports for 4G and also 5G “both” telecom equipment
(iv) FIs are increased “significantly” e. major global “tech” companies have setup manufacturing units in India
(v) Global supply chain is increased “significantly”
152. What are Drones and Drone components?
(i) Drones and also Drone components “both” have strengthened e. INR 120 crore are allotted for PLI Scheme
(ii) Imports are decreased “significantly”
(iii) Exports are increased “significantly”
(iv) Productions are increased “significantly” e. increased 7 times from financial year ending on March 31, 2015 to March 31, 2024 (9 years)
(v) MSMEs and also start-ups “both” have participated “significantly”
(vi) FIs are increased “significantly”
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