India's Production Linked Incentive (PLI) schemes have committed over ₹1.97 lakh crore in incentives across 14 sectors — from mobile phones to pharmaceuticals, food processing, textiles and white goods. For companies receiving PLI benefits, independent verification of actual investment made is a mandatory requirement under most PLI scheme guidelines.
Getting this verification right is critical. Errors or gaps in investment certification can delay incentive disbursements, trigger audits, or lead to recovery proceedings.
What Is PLI Investment Verification?
Under PLI scheme guidelines issued by the respective Ministry, beneficiary companies must demonstrate that they have actually made the incremental investment committed in their application. This investment — primarily in plant, machinery, equipment and technology — must be certified by an independent, qualified professional.
The verification confirms:
That the assets are being used in the eligible manufacturing activity
That the assets exist and are operational
That the assets represent genuine incremental investment (not revalued existing assets)
That the investment amount is correctly stated and supported by invoices and documentation
Who Can Certify PLI Investments?
Different PLI schemes specify different certifying authorities. Common requirements include:
- Chartered Accountant — for financial amounts and book value confirmation
- Chartered Engineer (India) — for technical verification of plant, machinery and equipment
- IBBI Registered Valuer — for fair market value confirmation where required
- Cost Accountant — for production cost verification in some schemes
For most capital-intensive PLI categories — electronics, pharma, food processing, textiles — a Chartered Engineer certificate combined with an IBBI registered valuer report provides the strongest verification package that Ministry officials and auditors accept.
What Documentation Is Required?
A complete PLI investment verification file typically includes:
- Asset register — complete list of all PLI-eligible assets with purchase date, supplier, invoice value
- Purchase invoices — original invoices for all significant assets
- Physical verification report — CE confirms existence and condition of each asset
- Valuation report — IBBI registered valuer confirms fair market value
- Declaration — company CFO / MD declaration confirming investment details
- Auditor certificate — CA certificate confirming investment as per books
Common Mistakes That Delay PLI Disbursements
Based on our experience with PLI verification assignments, the most common issues are:
- Including pre-scheme assets — only incremental investment made after the base year qualifies; valuing existing assets doesn't count
- Missing invoices — assets without original purchase documentation are rejected by Ministry auditors
- Engaging uncertified valuers — some schemes specify that only IBBI registered valuers are acceptable; reports from others are rejected
- Scope creep — including ineligible assets (office furniture, vehicles, IT equipment not used in manufacturing) inflates the claim and invites scrutiny
Starting the verification process early — ideally 60–90 days before the incentive claim deadline — avoids last-minute scrambles and documentation gaps.
Why Axium Valuation
- Axium Valuation combines IBBI registered valuers and Chartered Engineers under one roof. We have completed PLI investment verification assignments for companies in the electronics, pharmaceutical and food processing sectors.
- Our reports are structured to meet Ministry audit requirements — asset-by-asset, with invoice cross-referencing, physical inspection certificates and IBBI-compliant valuation methodology.
- Contact us to discuss your PLI verification timeline and scope.e.
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