The Department for Promotion of Industry and Internal Trade (DPIIT) has quietly extended PLI Scheme Phase 2 windows for infrastructure segments—roads, ports, railways, and metro systems—until 31 March 2025. Thousands of Indian contractors, manufacturers of steel reinforcement, pre-fabricated bridges, and signalling equipment remain unaware of filing deadlines, eligibility reset criteria, and mandatory GST/FEMA compliance documentation.
This window closes in weeks.
Market signals
From FY2025–26, minimum capex thresholds for infrastructure contractors rise 30%, and export-to-sales ratios (now 15% for roads) disqualify domestic-only players. Retrofit applications no longer accepted.
DPIIT now cross-checks GST ITC claims against PLI subsidy receipts. Firms showing input tax reversals or blocked credit lose incentive tranches. Dual-filing audits have begun.
Infrastructure firms receiving PLI in foreign currency must file AD-1 forms with RBI within 30 days and declare source-of-funds for capex purchases. Non-compliance triggers ED scrutiny.
PLI Phase 2 operates under DPIIT oversight with GST Authority cross-verification and RBI FEMA monitoring. Firms must file eligibility certificates, audited financial statements (last 2 FY), detailed project timelines, and capex proof by 31 March. Delayed filings forfeit retroactive claims. At Vinayakam Consultants, we audit PLI readiness—verifying GST ledger alignment, FEMA documentation, and capex substantiation—and file applications through our DPIIT-linked compliance portal, reducing rejection risk and unlocking first-tranche disbursals within 60 days.
Your action checklist
- Audit GST ITC records for last 24 months; identify and correct any input tax reversals on infrastructure material purchases before filing.
- Collate capex invoices, bank statements, and asset registration certificates; prepare auditor-certified statement of fixed assets for the last two financial years.
- Draft and register FEMA AD-1 form with your bank; obtain RBI acknowledgment and attach to PLI application to unlock forex repatriation eligibility.
- Engage a Vinayakam compliance partner NOW to file Phase 2 eligibility certificate and avoid the 31 March 2025 cutoff; first-stage rejection can be appealed only within 15 days of notification.