The Department for Promotion of Industry and Internal Trade (DPIIT) released updated PLI Phase 2 guidelines in late May 2026, extending application windows and relaxing localization norms for select sectors including auto components, electronics, and bulk pharmaceuticals. Manufacturers who missed the original April deadline now have a revised submission window through June 30, 2026—but with stricter documentation and capex-commitment requirements.
Market signals
PLI Phase 2 has lowered the minimum local value-addition threshold from 40% to 35% for EV battery packs and semiconductor assembly. This opens doors for contract manufacturers and import-reliant players, but triggers fresh compliance audits for existing awardees.
New applicants must now provide audited capex commitment letters and board resolutions. The Ministry is cross-checking undertakings against GST records and fixed-asset filings to prevent over-claiming and fraud.
Pharma bulk-drug manufacturers have until September 15, 2026; auto-component makers until June 30, 2026. Electronics players face mid-July closure. Missing your sector's deadline triggers automatic ineligibility with no appeals window.
PLI Phase 2 extensions fall under DPIIT jurisdiction but trigger GST reclassification and Schedule VI-related challenges, especially for capex depreciation claims. MCA filing mandates require board resolutions and director certification for all new undertakings. At Vinayakam, we help manufacturers audit localization compliance, prepare audited capex affidavits, align GST-ITC claims with PLI eligibility, and navigate sector-specific documentation checklists—ensuring no technicality derails your award or disbursement.
Your action checklist
- Verify your sector's revised application deadline (pharma Sept 15, auto-components June 30, electronics July 15) and flag internally now; a single missed date triggers permanent rejection.
- Engage a CA to audit and certify all capex commitments against your fixed-asset register, GST invoices, and bank statements—DPIIT's cross-checks are now live and forensic.
- Prepare a localized supply-chain map showing part-wise local content percentages; any slip below the 35–40% threshold (depending on sector) requires pre-submission waiver requests.
- File board resolutions and undertaking letters through MCA as contemporaneous board minutes; do not rely on emails or informal approvals—the Ministry's compliance team now cross-references MCA e-governance portal records.