Different Ministries of the Government of India introduce various Production Linked Incentive (PLI) Schemes to boost domestic manufacturing industries, reduce dependency on imports, and promote exports from India.

These incentive schemes are generally implemented by the respective Ministry/Department of the Government of India in coordination with intermediary financial institutions and verification agencies such as IFCI, SIDBI, and other designated financial institutions appointed by the Government. These agencies play an important role in appraisal, scrutiny, verification, monitoring, and processing of applications and incentive claims.

Now any person who has filed the application for such incentive scheme and has got the approval the applicant/entity is generally required to Implement the approved project within the prescribed timeline, Make investments strictly in accordance with the approved project and approved capital expenditure and meet the other as required under scheme.

Before filing the disbursement claim, the applicant is generally required to ensure that

• The approved investment has been made within the prescribed timeline
• Capital expenditure has been properly billed, paid, and capitalised
• Threshold investment and other eligibility conditions prescribed under the scheme have been fulfilled

Disbursement Application Process under PLI / M-SIPS / SPECS Schemes:-

After approval of the project and commencement of commercial production, the applicant is required to file a disbursement/incentive claim application before the concerned Ministry/Department or designated intermediary financial institution/verification agency such as IFCI, SIDBI, or any other appointed agency.

The disbursement process generally includes the following stages:

• Preparation of disbursement claim sheet against approved sheet in the prescribed format
• Submission of item-wise details of eligible capital expenditure/investment
• Submission of invoices, purchase orders, work orders, payment proofs, and asset registers
• Submission of CA Certificate, Company Secretary Certificate, Chartered Engineer Certificate, Cost Accountant Certificate, in the pre-prescribed formats.
• Submission of self-undertakings/declarations as prescribed under the scheme guidelines
• Verification sheet that the expenditure has been incurred within the approved project timeline and approved capex limits
• Submission of proof of commencement of commercial production and statutory approvals/licences
• Submission of proof of commencement of commercial production and statutory approvals/licences

Any deviation in approved products, project location, capital expenditure, or project scope may require prior approval from the concerned Ministry before processing of the disbursement claim.

The entire disbursement process is highly technical and document-intensive, requiring expert consultancy for preparation of claim sheets, financial analysis, certifications, regulatory compliances, verification procedures, and submission of applications in the prescribed government formats. Proper professional guidance helps in avoiding discrepancies, delays, queries, rejection of claims, and non-compliance with scheme guidelines.