DPIIT on PLI Scheme: The Department for Promotion of Internal Trade said that if a company is taking advantage of the PLI scheme and for some reason it exits from this scheme, then the incentive received by that company will have to be returned along with interest.
DPIIT on PLI Scheme: The company availing the benefit of Production Linked Incentive (PLI) scheme, if for any reason, fails to make the full committed investment and exits midway, will have to refund the incentive amount along with interest and His bank guarantee will also be encashed.
This information was given under the Frequently Asked Questions released by DPIIT on Monday. The Department for Promotion of Industry and Internal Trade (DPIIT) under a slew of FAQs on PLI Scheme for Domestic Capital Goods – ACs and LED Lights stated that mid-time exits by a selected applicant without meeting the investment criteria This fails one of the selection criteria for maximizing Gross Value Addition in the economy and also deprives any other eligible company to be selected under the scheme.
There will also be loss of bank guarantee
The FAQ states, ‘Therefore, if a selected applicant rejects the proposal for sanction under the scheme at any stage or exits the scheme for any reason without making full committed investment, in such case, the selected applicant shall The submitted bank guarantee will be forfeited as per the provisions.’
The applicant will have to return the incentive amount
It states, “The applicant has to return the incentives availed by him. This refund has to be made with interest. The interest will be based on three years annual calculation of MCLR of State Bank.
PLI scheme was extended
Recently, with emphasis on mobile phones, the government has extended the period of Production Based Incentive Scheme (PLI) on large scale manufacturing of electronics products by one year to 2025-26. The base year for this scheme will remain 2019-20 but companies will have the option to choose the base year 2020-21 year for calculating the period of incentive of five years.
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