The Ministry of Commerce & Industry has announced pivotal changes to the Production Linked Incentive (PLI) scheme, focusing on air conditioners (ACs) and LED lights. Responding to feedback from beneficiaries and industry, the modifications aim to streamline operations and improve the business environment. A significant shift involves replacing the comparable uncontrolled price (CUP) with the cost-plus method for sales price calculation, particularly for captive consumption or group supplies. The ‘Arm’s length’ definition is amended accordingly, alongside updates on eligible capital investments, extended reporting deadlines, refined administrative procedures, and the inclusion of bank guarantee roll-over, collectively enhancing the scheme’s efficiency.