Ifci Limited · NSE:IFCI
Ifci — Investor Presentation (May 2020)
24 slides from Ifci's investor presentation, May 31, 2020
Slide 1: Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing
Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing
Slide 2: PLI Scheme
1 PLI Scheme Incentives Target Segments Tenure Base Year 4% - 6% Five (5) years Mobile Phones & Financial Year Production Linked Specified Electronic 2019-20 Incentive for a Application Period period of 5 years Components 4 months initially Eligibility Applicability Empowered Committee 1. The number
Slide 3: Scheme Guidelines
} PD), Digital India e Power To Empower ELECTRONICS INDIA Billion Needs Million Chips Scheme Guidelines
Slide 4: Key Definitions (Para 2)
1 Key Definitions (Para 2) • Invoice Value: Unit Price charged on an invoice raised by an applicant on sale of manufactured goods, net of credit notes, discounts or any other adjustments and applicable taxes • Net Sales Turnover: Net Sales Turnover shall mean the Gross Sale Turnover net of credit no
Slide 5: Key Definitions (Para 2)
2 Key Definitions (Para 2) • Non-Originating Material and Services: Material and Services whose country of origin is other than the country in which that material / service is used in manufacturing and any material / service whose origin cannot be determined • Competent Authority: Competent Authorit
Slide 6: Eligibility Criteria (Para 3)
3 Eligibility Criteria (Para 3) General Conditions 1. Eligible companies should be engaged in manufacturing of goods in India as covered under Target Segments. 2. Eligibility shall be subject to thresholds of Incremental Investment and Incremental Sales of Manufactured Goods (covered under Target Se
Slide 7: Qualification Criteria and Ceiling (Para 3.2 read with Para 9.3 & 9.4)
4 Qualification Criteria and Ceiling (Para 3.2 read with Para 9.3 & 9.4) Eligibility shall be subject to qualification criteria for applicants under different Target Segments in the Scheme are as defined Ceiling on eligible Segment Qualification Criteria applicants* Mobile (Invoice Consolidated Glob
Slide 8: Investment (Para 3.4 and 4.1.1)
5 Investment (Para 3.4 and 4.1.1) Specific Conditions of Incremental Investment 1. Cumulative value of investment done till such year (including the year under consideration) over the Base Year shall be considered. (Para 3.4) 2. Investment made on or after 01.04.2020 shall be considered for determin
Slide 9: Sale of Manufactured Goods (Para 3.3)
6 Sale of Manufactured Goods (Para 3.3) Specific Conditions of Incremental Sale of Manufactured Goods (Covered under Target Segments) 1. Total Sales of Manufactured Goods covered under Target Segments for such year over the Base Year, irrespective of Invoice Value (whether below or above INR 15,000
Slide 10: Investment (Para 4)
7 Investment (Para 4) General Conditions 1. Expenditure on consumables and raw material used for manufacturing shall not be considered 2. The date of invoice would be considered as the date of investment 3. The heads of Investment, based on which eligibility is being determined, should be capitalize
Slide 11: Investment (Para 4)
8 Investment (Para 4) # CATEGORY DEFINITION CONDITION q Expenditure on plant, machinery, equipment as well q Para 4.2.3 of the Scheme Guidelines: as tools, dies, moulds, jigs, fixtures (including parts, Used / Refurbished Plant, Machinery accessories, components, and spares thereof) of and Equipment
Slide 12: Investment (Para 4)
9 Investment (Para 4) # CATEGORY DEFINITION CONDITION q Capital expenditure on R&D and product development related q The applicant shall provide a to Target Segments statutory auditor certificate and purchase agreements in q Expenditure on in-house and captive R&D, directly respect of the cost of at
Slide 13: Investment (Para 4)
10 Investment (Para 4) # CATEGORY DEFINITION CONDITION q Captive power and effluent treatment plants, q The applicant shall provide a statutory essential equipment required in operations areas auditor certificate and purchase agreements in respect of the cost of 4 Associated Utilities q Incl. IT and
Slide 14: Application Process (Para 5, 6 and Annexure 3)
11 Application Process (Para 5, 6 and Annexure 3) 1. Application can be made by any company registered in India. 2. The number of applications allowed per applicant for support under the Scheme shall be restricted to one (1). 3. PMA / MeitY to receive the application (through an Online Portal) and i
Slide 15: Application Process (Para and Annexure 3)
12 Application Process (Para 5 and Annexure 3) Applicant Application Submit the received by Application MeitY / PMA Prima facie PMA shall issue a Letter 5 days examination of Approval post approval from Competent Authority t a e e te r i pr m i im ’t cr Incomplete M cie n a e es aci ee c 15 days fa
Slide 16: Project Management Agency (PMA) – (Para 7)
13 Project Management Agency (PMA) – (Para 7) q Receipt of application, examination and appraisal of applications and issuing acknowledgements q Recommendations to the Empowered Committee (EC) for approval of applications q Determination of Baseline for Sales of Manufactured Goods and Investment q V
Slide 17: Empowered Committee (EC) – (Para 8)
14 Empowered Committee (EC) – (Para 8) q Authorized to carry out any amendments in Scheme Guidelines. q Consider applications, as recommended by the PMA for approval, and make recommendations to the Competent Authority for approval q Consider baselines for Investment and Sale of Manufactured Goods u
Slide 18: Approval (Para 9)
15 Approval (Para 9) 1. Project Management Agency (PMA) will appraise the applications and make appropriate recommendations to the Empowered Committee (EC) for approval 2. EC will consider applications, as recommended by PMA for approval and make appropriate recommendations to the Competent Authorit
Slide 19: Baseline Determination (Para 10)
16 Baseline Determination (Para 10) Period for Baseline Determination Investment As on 31.03.2020 Sales of Manufactured Goods First Year Second Year Onwards Period from Period from 01.08.2019 to 01.04.2019 to 31.03.2020 31.03.2020 • PMA shall determine the baseline based on information / documents s
Slide 20: Calculation of Incentive (Para 11)
17 Calculation of Incentive (Para 11) Net Incremental Sales of Eligible Product x Rate of Incentive Where • Net Incremental Sales shall be Net Sales Turnover of Eligible Product for the period to which claim for disbursement of incentive pertains minus the Net Sales Turnover of said Eligible Product
Slide 21: Disbursement Process (Para 12)
18 Disbursement Process (Para 12) Applicant PMA will examine claims, submits the verify eligibility, and assess Claim for incentive payable Disbursement tiv ility d i g e .t. en ligib an inin t w.r e m b ter Dou nc de Approval from Empowered Committee PMA shall disburse funds Refer to MeitY, PMA to
Slide 22: THANK YOU
THANK YOU
Slide 23: PLI Scheme – Eligibility Criteria
1 PLI Scheme – Eligibility Criteria Proposed Incentive Incremental Investment over Incremental Sales of Manufactured Segment Rate (%) Base Year Goods over Base Year INR 1,000 Crore over 4 Years Year 1: INR 4,000 Crore Mobile Cumulative Minimum Year 2: INR 8,000 Crore (Invoice value of Year 1: 250 Ye
Slide 24: PLI Scheme – List of Specified Electronic Components
2 PLI Scheme – List of Specified Electronic Components S. No. Description of Goods 1. SMT components 2. Discrete semiconductor devices including transistors, diodes, thyristors, etc. Passive components including resistors, capacitors, etc. for electronic 3. applications Printed Circuit Boards (PCB),