The Ministry of Textiles vide its notification dated 22nd February 2022 has notified that a company though registered prior to date of notification i.e. 24th September 2021, but has not started production will be treated as a new company for the purpose of benefits under the production linked incentive scheme. However, the investment made prior to date of notification i.e. 24th September 2021 will not be counted for eligible investment.
As per the earlier notification dated 24th September 2021, The applicant will form a separate company under Companies Act, 2013, before commencement of investment under the production linked incentive scheme. Investment made in anticipation after 24th September 2021 may be taken into account to meet investment criteria.
However in view of the various representations received from the industry regarding requirement to form a new company and investment made thereto prior to 24th September 2021, the matter was considered and decided that A company though registered prior to date of notification i.e. 24th September 2021, but has not started production will be treated as a new company for the purpose of benefits under this scheme.
