{"id":41069,"date":"2022-03-14T11:20:19","date_gmt":"2022-03-14T05:50:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41069"},"modified":"2022-03-14T11:22:30","modified_gmt":"2022-03-14T05:52:30","slug":"design-linked-incentive-dli-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/","title":{"rendered":"Design Linked Incentive (DLI) Scheme &#8211; An Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nworld&#8217;s fastest-growing industry is the electronics industry, with applications\nin all sectors or areas of the economy. Semiconductors have been the main\nenabler in the development of electronics for over 5 decades and will play an\nimportant role in the development of new applications, including AI (Artificial\nIntelligence), robotics, smart mobility, IoT (Internet of Things), g5, etc. In\nIndia, the Ministry of Electronics &amp; Information Technology has introduced\nthe Design Linked Incentive (DLI) Scheme to balance the disabilities in the\ndomestic industry engaged in semiconductor design to not only move up in\nvalue-chain but also enhance the semiconductor chip design ecosystem in the\ncountry. CDAC is accountable for the implementation of the Design Linked\nIncentive Scheme as a Nodal Agency.<\/p>\n\n\n\n<p>The\nDesign Linked Incentive (DLI) Scheme intends to provide financial incentives\nand design infrastructure support across different stages of\ndevelopment\/advancement and deployment of semiconductor design(s) for ICs\n(Integrated Circuits), SoCs (System on Chips), Chipsets, Systems and IP cores\n&amp; semiconductor linked design(s) over 5 years of the time period.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#What_is_the_Objective_of_the_Design_Linked_Incentive_DLI_Scheme\" >What is the\nObjective of the Design Linked Incentive (DLI) Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#Eligibility_under_Design_Linked_Incentive_DLI_Scheme\" >Eligibility\nunder Design Linked Incentive (DLI) Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#Incentives_under_the_Scheme\" >Incentives\nunder the Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#Enhancement_in_the_Manufacturing_of_Semiconductor\" >Enhancement in\nthe Manufacturing of Semiconductor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#Disbursement_Process\" >Disbursement\nProcess<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/design-linked-incentive-dli-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Objective_of_the_Design_Linked_Incentive_DLI_Scheme\"><\/span>What is the\nObjective of the Design Linked Incentive (DLI) Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Proving and nurturing the\ngrowth of the domestic companies, MSMEs, and start-ups;<\/li><li>Facilitating and strengthening\naccess to semiconductor design infrastructure for the MSMEs and start-ups;<\/li><li>Achieving noteworthy\nindigenisation in semiconductor content and IPs involved in the electronic\nitems deployed in the country, thereby import substitution &amp; value addition\nin the electronics sector. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_under_Design_Linked_Incentive_DLI_Scheme\"><\/span>Eligibility\nunder Design Linked Incentive (DLI) Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Financial\nincentives &amp; design infrastructure support will be extended to domestic companies,\nMSMEs &amp; start-ups involved in semiconductor design for ICs, SoCs, IP cores,\netc., linked design under the Design Linked Incentive (DLI) Scheme.<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs<\/strong><\/a> shall be outlined as per the Gazette Notification by Ministry of MSMEs dates June 2020 or extant norms;<\/li><li>Start-ups shall be defined as per the DPIIT notification dates Feb 2019 or extant norms;<\/li><li>Domestic companies shall be outlined as those which are owned by Indian Citizens as mentioned under the <strong>Policy Circular<\/strong><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=circular\"><strong>[1]<\/strong><\/a><\/sup> of FDI of 2017 or extant norms. A company is deemed as owned by resident Indian Citizens if more than 50% of the capital in its beneficially owned by Indian Citizens and\/or Indian companies, which are ultimately owned &amp; controlled by resident Indian citizens;<\/li><li>The approved applicants or candidates that claim incentives under the Design Linked Incentive (DLI) Scheme shall retain the domestic status (more than 50% of the capital in it is beneficially owned by Indian Citizens or\/and Indian companies which are ultimately owned &amp; controlled by resident Indian Citizens) for 3 years after claiming incentives under the DLI Scheme;<\/li><li>Eligibility under Design Linked Incentive (DLI) Scheme shall not affect eligibility under any other Scheme and vice-versa.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Incentives_under_the_Scheme\"><\/span>Incentives\nunder the Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Financial\nincentives shall be given to approved applicants under the Design Linked Incentive\n(DLI) Scheme in the following manner:<\/p>\n\n\n\n<ol><li><strong><em>Deployment Linked Incentive<\/em><\/strong>:\nIncentive of 6% to 4% of net sales turnover 5 years subject to a ceiling of Rs.\n30 crores per application will be given to consented applicants whose\nsemiconductor design for ICs, Chipsets, Systems &amp; IP Cores, SoCs, and\nsemiconductor associated with designing are deployed in electronic products or\nitems.<\/li><li><strong><em>Product Design Linked Incentive<\/em><\/strong>\n(PDLI): Reimbursement of up to 50% of the eligible expenditure subject to a\nmaximum of Rs. 15 crores per application will be provided as financial or\nmonetary&nbsp; support to the approved or\nconsented applicants who are engaged in semiconductor design for ICs, SoCs,\nSystems and IP Cores &amp; semiconductor associated with designing that can be\ndemonstrated in an operational environment and are set for volume production.<\/li><li><strong><em>Chip Design Infrastructure\nSupport<\/em><\/strong>: C-DAC will establish the India Chip\nCentre to host the state-of-the-art design infrastructure (viz IP Cores, EDA\nTools, and support for MPW (Multi-Project Wafer fabrication) and post-silicon\nvalidation and facilitate its access to supported companies.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Enhancement_in_the_Manufacturing_of_Semiconductor\"><\/span>Enhancement in\nthe Manufacturing of Semiconductor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The sudden surge in demand for\nchips &amp; semiconductor components has supported the requirement to set up a\nstrong semiconductor ecosystem in India.<\/li><li>Several sectors are comprising\nauto, medical &amp; telecom technology suffered due to the unexpected surge\nleading to the shortage of chips manufactured by only a few countries.<\/li><li>The beginning of new companies\nwill aid in meeting the demand &amp; supply and promote innovation in India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disbursement_Process\"><\/span>Disbursement\nProcess<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>The financial support against\nthe product development associated with the incentive component of the Design\nLinked Incentive (DLI) Scheme shall be released after the consent of the\napplication and achievement of milestones as included in the consent letter.<\/li><li>The claims for Deployment\nLinked Incentive (DLI) may be submitted after the end of each F.Y.<\/li><li>Ministry of Electronics &amp;\nInformation Technology shall make financial provisions for disbursal of\nfinancial support and deployment associated incentive to consented projects\nunder the Design Linked Incentive (DLI) Scheme. The disbursement shall be\ncompleted by CDAC based on approval\/consent conditions. CDAC will submit\nfinancial necessity to Ministry as the consolidated amount on a regular basis\nand not on a project-by-project basis.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> This century will be an era of the digital revolution, indicating the increased use of mobile phones and computer devices. This increased usage can be met only with the strong availability of semiconductor chips that endures their functioning. Hence, Indian needs to focus on the development of semiconductors to realise its digital potential and emerge as a superpower in the current era. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/market-intervention-price-scheme-mips-for-farmers\/\">Market Intervention Price Scheme (MIPS) for Farmers: An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world&#8217;s fastest-growing industry is the electronics industry, with applications in all sectors or areas of the economy. Semiconductors have been the main enabler in the development of electronics for over 5 decades and will play an important role in the development of new applications, including AI (Artificial Intelligence), robotics, smart mobility, IoT (Internet of [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":41072,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[2178],"acf":{"service_id":"71"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":5080,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41069"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41069"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41069\/revisions"}],"predecessor-version":[{"id":41084,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41069\/revisions\/41084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41072"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}