The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced revised guidelines for companies participating in the production-linked incentive scheme (PLI) for white goods, such as air conditioners and LED lights. Under these updated regulations, selected companies must now provide a certificate from a registered cost accountant, confirming related party sales and determining the arm's length price, in order to avail the scheme's benefits.

In a bid to streamline the operation of the PLI scheme and bolster domestic manufacturing of white goods, DPIIT has empowered the administrative ministry to conduct site visits to assess the scheme's progress. Feedback directly from the industry will also be sought during these visits. These modifications were made in response to input received from applicants and industry associations.

The revised guidelines necessitate certification by a cost accountant, who is a member of the Institute of Cost and Management Accountants of India, for products sold to group companies or used for captive consumption. Additionally, the computation of the arm's length price must be supported by a certificate from the same cost accountant. Furthermore, the deadline for filing claims has been extended from October 31 of the financial year to which the claim pertains, to January 15.

In cases where disparities are found between statutory compliances and the records submitted during the claim filing, companies are required to refund the excess incentive availed along with accrued interest. Moreover, the department has extended the timeframe from two to three years for companies to submit details of additional locations, along with all relevant documents.

This initiative, with a budget of Rs 6,238 crore, has welcomed companies like Daikin, Panasonic, and Syska into its fold, marking a significant step towards fostering domestic production in the white goods sector.

Source: Business Standard