Context: Recently, the Ministry of Electronics and Information (MeitY) started seeking applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme.

About Design Linked Incentive (DLI) Scheme

• Launched by: Ministry of Electronics and Information (MeitY) in 2021.
• Implemented by: C-DAC (Centre for Development of Advanced Computing), under MeitY.
• Objective: To reduce the problems of the domestic industry involved in semiconductor design to strengthen the semiconductor chip design ecosystem in the country.

Beneficiaries

• Indian companies (Private Limited Company or a Public Limited Company)
• It includes Indian MSMEs and Startups.

Component

Under the DLI scheme, Approved companies can claim their expenditure/ncentive in 3 schemes of DLI:

• Design Infrastructure support:  Reimbursement of up to Rs 30 Lakh per application for fabrication of design and post-silicon validation activities.

Product Design Linked Incentive (P-DLI): Milestones linked reimbursement of up to 50% of the eligible expenditure subject to a ceiling of Rs 15 Crore per application.

• It is given for designing semiconductor goods and demonstrating them in the operational environment and volume of production.

Deployment Linked Incentive (DLI): Reimbursement of 6-4% of net sales of designed semiconductor goods over 5 years subject to a ceiling of Rs 30 Crore.