NEW DELHI: The Ministry of Commerce & Industry on Wednesday announced key changes to the Production Linked Incentive (PLI) scheme for white goods, specifically air conditioners (ACs) and LED lights to simplify its operation and enhance the ease of doing business in the sector.
This was done in response to feedback from beneficiaries and industry associations.
One notable change is the adoption of the cost-plus method, which replaces the previous comparable uncontrolled price (CUP) method for calculating sales prices. This change applies particularly to captive consumption or supplies to group companies.
In line with this, the definition of ‘Arm’s length’ has also been amended.
According to the revised guidelines, the scheme will now include investments in tool rooms for manufacturing moulds & dies as eligible capital investments.
An extension of one year has also been granted for informing the authorities about the establishment of additional manufacturing facilities.
Previously, beneficiaries had two years to provide this information.
In terms of administrative procedures, the last date for claim submission and refunding excess incentives has been revised. This change allows beneficiaries to rectify any discrepancies between statutory compliance and the records provided at the time of filing claims.
Furthermore, the Administrative Ministry will now conduct site visits to ensure compliance with the scheme guidelines.
Additionally, the scheme now permits the roll-over of bank guarantees.