Understanding PLI Verification and Audits

The Indian government’s Production Linked Incentive (PLI) Scheme has become a major catalyst in boosting the country’s manufacturing sector, particularly in electronics, pharma, automotive, and white goods. While the scheme offers generous incentives for eligible companies, it also brings with it a strong emphasis on documentation, asset verification, and audit compliance — areas where Chartered Engineers and technical consultants play a crucial role.

In this blog, we’ll break down what PLI is, its benefits, and why PLI Verification & Audits are essential for manufacturers looking to leverage the scheme effectively.

What is the PLI Scheme?

The Production Linked Incentive (PLI) Scheme was launched by the Government of India to encourage domestic manufacturing and attract global investments in critical sectors. Under the scheme, companies that meet certain production and investment thresholds are eligible for direct financial incentives based on incremental sales over a base year.

Key Features:

• Incentives tied to increased production and sales
• Sector-specific eligibility (e.g., mobile phones, APIs, telecom equipment, EV components)
• Targeted toward building self-reliance (Aatmanirbhar Bharat) and reducing imports

Benefits of the PLI Scheme for Manufacturers

• Direct Cash Incentives: Based on actual production, not assumptions.
• Boost to Capex Investments:Encourages greenfield expansion and capacity building.
• Global Competitiveness: (Aatmanirbhar Bharat)Helps Indian manufacturers scale with incentives.
• Employment Generation: (Aatmanirbhar Bharat)Drives job creation across supply chains.
• Long-Term Policy Stability:Offers visibility for planning investments.

Why PLI Verification & Audits Matter

To claim incentives under PLI, companies must provide proof of capital investments, machinery commissioning, production output, and compliance with scheme guidelines. This requires independent verification by Chartered Engineers and technical auditors.

Axium’s PLI Verification Support Covers:

• Capex Validation: Physical verification of assets purchased and installed
• Asset Tagging & Documentation: Ensuring traceability of machinery and systems
• Production Output Audit: Verification of incremental production claims
• Chartered Engineer Certification: As mandated by scheme authorities
• Input-Output Norm Certification: (if applicable)
• Compliance Reports for Disbursement

Role of Chartered Engineers in PLI Verification

Chartered Engineers serve as independent technical experts who verify:

• Investment in plant and machinery (actual purchase & installation)
• Production line commissioning and functional status
• Compliance with industry-specific norms and technical eligibility

Their reports and certifications are often mandatory for PLI disbursement, making them a vital part of the audit and compliance cycle.

Get PLI-Ready with Axium

If you're planning to claim incentives under the PLI scheme or preparing for audits, early engagement with a verification partner like Axium can reduce delays, avoid rejections, and improve documentation accuracy.

Email: admin@axium.co.in