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What is PLI Scheme? – Things to know about PLI Scheme

The Production Linked Incentive Scheme (PLI Scheme) of India Government giving opportunities for companies and it’s segments, things to know about Production Linked Incentive Scheme is explained in this article.

In general, Production-Linked Incentive scheme aims at providing incentives for companies on progressive sales for the domestically produced goods. The scheme encourages local companies in India to expand their manufacturing units and to increase employment. Consequently, this will help in reducing the country’s dependence on imported products. It also invites overseas firms to set up units in India.

On April 1st 2020, the IT ministry announced a scheme that would provide incentives of 4-6% percentage for electronics companies that produce mobile phones and other electronic components like diodes, resistors, transistors, etc. The scheme not only attract foreign investment in the sector but also increases the local mobile manufacturers to expand their units. Formerly, the scheme was only for several sectors like Pharmaceutical ingredients, medical devices and mobile phones and allied equipment manufacturing. 

In March 2020, Indian Government announced 53 bulk drugs as eligible for PLI.  It was of worth INR 6940 crore. The scheme is expected to have advantages for over 150 manufacturing units introducing progressive sales of INR 46400 crore. 

The scheme is ought to expand an incentive of 4-6% on progressive sales for goods produced in India and produced in targeted sectors for a period of five years following the base year. What is PLI Scheme?  – the most searched terms in internet brings much insights to the things to know about PLI Scheme

Additionally, the scheme expanded to 10 more sectors. This includes telecom, textiles, automobiles and auto components, white goods, food processing, electronics, specialty steel, solar photo-voltaic modules.


  • To promote local companies in expanding their manufacturing units.
  • To guard recognized product areas.
  • For initiating non-tariff measures that build the imports expensive.
  • To accept the importance of exports, but to concentrate more on local market.


Companies that are certified in India are eligible. Also, the ones that produce goods under target sectors are eligible to apply for PLI scheme. The applicant have to meet the threshold criteria for incremental investment. This includes a minimum of INR 10 crore for MSME or INR 100 crore for others. Also, a maximum of INR 1000 crore. The criteria are said for the year under consideration. Some sectors also have such criteria for incremental sales. The applicant can have an existing or new manufacturing units in one or more places in the country. The PLI Scheme holds much importance while companies expanding their business to newer Levels.


  1. Any registered company in India can apply.
  2. The applicant can only apply once for support under the scheme.
  3. Through an online portal, PMA(Project management Agency) or MeitY will receive the application for prima facie examination.
  4. They provide acknowledgment within 15 days after the completion of examination.
  5. PMA reviews each and every applications based on which they create a detailed checklist.
  6. Accordingly, PMA will put forward suitable proposals to the TC(Technical Committee) for approval.
  7. PMA and TC will forward the final proposals to EC(Empowered Committee) for its approval.
  8. The applicants are finalized within 60 days of acknowledgment issuance.
  9. The applicant receives the approval letter within 5 working days after getting approval from the Competent Authority.


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