Stratfield Partners

Federal & State
Incentive Advisory

Helping businesses identify, secure, and realize government incentives across Central and State schemes. From eligibility to disbursement.

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India's incentive architecture is among the most ambitious globally, but the gap between policy promise and actual realization remains one of the biggest challenges for businesses.

INR 1.97L Cr Total PLI outlay across 14 sectors
< 11% Of total PLI outlay actually disbursed by mid-2025
764+ Companies signed up for PLI schemes
4-6 Months Average delay in incentive disbursement
30+ Active state industrial policies nationwide
25+ States With distinct incentive frameworks

Sources: PIB, DPIIT, Reuters, CRISIL

Why Businesses Struggle

The gap between incentive announcements and actual cash-in-bank is where businesses lose the most. Here is what makes realization so difficult.

Fragmented Policy Architecture

Central, state, and sector-specific schemes operate in silos with overlapping eligibility criteria, creating confusion for businesses trying to identify applicable incentives.

Disbursement Delays & Bureaucratic Friction

Rigid verification processes, annual disbursement cycles, and documentation discrepancies cause months-long delays, even after companies meet production targets.

Policy Instability & Mid-Term Modifications

Governments routinely modify incentive terms during the eligibility period, reducing entitlements or changing calculation methods, leaving businesses exposed.

Compliance Burden & Documentation Gaps

Frequent audits, complex reconciliation requirements, and inconsistent criteria across departments make it difficult for companies to maintain clean claim files.

MSME Exclusion from Large Schemes

High investment thresholds and complex application processes effectively lock out smaller manufacturers from flagship schemes like PLI.

No Dedicated Internal Expertise

Most companies lack specialized teams to track evolving policies, manage applications across multiple agencies, and follow through on multi-year claim cycles.

The Realization Gap

Incentives promised on paper rarely translate into cash in the bank. This is the single biggest challenge facing Indian manufacturers today.

What Is Promised
Up to 100% of Fixed Capital Investment as incentives under state industrial policies
3-15% of incremental sales under Central PLI schemes across 14 sectors
SGST reimbursement, electricity duty exemptions, interest subsidies, and EPF support
What Actually Happens
Only INR 21,689 Cr disbursed out of INR 1.97L Cr PLI outlay by mid-2025
Samsung waited over 2 years for its INR 500 Cr FY21 incentive claim due to documentation discrepancies
6 critical PLI sectors saw zero participation or zero disbursement

The gap between approval and disbursement is where businesses need expert advisory the most.

Two Distinct Ecosystems

Central and State incentive frameworks operate under fundamentally different structures, timelines, and compliance requirements. Navigating both demands specialized expertise.

Central Government Incentives

Mechanism
Output/sales-linked (PLI), capital subsidy (PMKSY), tax holidays
Key Schemes
PLI (14 sectors), ECMS, MOFPI/PMKSY, Startup India, SEZ benefits
Disbursement
Annual cycle, post-verification of incremental sales targets
Challenge
Stringent thresholds, WTO constraints, slow verification, MSME exclusion
Timeline
5-6 year incentive windows with annual claim filing

State Government Incentives

Mechanism
Capital subsidy on FCI, SGST reimbursement, stamp duty waiver, power tariff relief
Key States
Maharashtra (PSI 2019), MP (IPP 2025), Gujarat, Karnataka, Tamil Nadu, Telangana
Disbursement
Varies by state - annual or semi-annual, often delayed by 1-3 years
Challenge
Policy changes mid-term, taluka-based classifications, documentation intensity
Timeline
7-15 year incentive periods depending on scheme and investment category

Our Service Offering

End-to-end incentive advisory across the entire lifecycle, from identification through to the last rupee of disbursement.

Incentive Identification & Eligibility Assessment

Comprehensive mapping of all applicable Central and State schemes based on sector, location, investment quantum, and project profile. Comparative analysis across competing state policies.

Application Preparation & Filing

End-to-end documentation, project report preparation, and application management across multiple agencies. IEM, Udyam, DPIIT registrations and all ancillary filings.

Incentive Structuring & Optimization

Strategic structuring of investments to maximize eligible incentive quantum. Advice on project phasing, entity structure, location selection, and FCI computation.

Post-Approval Compliance & Monitoring

Ongoing compliance management through the full incentive tenure. Real-time tracking of claim status, periodic MIS reporting, and proactive resolution of queries.

Claim Filing & Disbursement Recovery

Preparation and filing of periodic incentive claims. Follow-up with disbursing authorities, resolution of discrepancies, and escalation management to secure timely payouts.

Policy Intelligence & Advocacy

Continuous monitoring of policy changes, new scheme announcements, and sunset provisions. Representation before authorities for customized packages or exemptions.

Our Approach

A structured, five-phase engagement model designed around actual disbursement, not just approval letters.

01
Discovery &
Assessment
Deep-dive into sector, investment plans, entity structure, and geography to map all eligible incentives.
02
Comparative
Analysis
Side-by-side evaluation of Central and State schemes with quantified benefit projections.
03
Application &
Filing
Complete documentation and application submissions across all relevant agencies.
04
Compliance &
Monitoring
Ongoing MIS reporting, case tracking, and periodic reviews throughout the tenure.
05
Claim &
Disbursement
Periodic claim filing, persistent follow-up, and escalation until full disbursement is secured.

Key Central Government Schemes

SchemeIncentiveSectors / Applicability
Production Linked Incentive (PLI) - 14 Sectors3-15% of incremental sales over 5-6 year windowPharma, electronics, auto, steel, textiles, food processing, solar, white goods, telecom
Electronics Component Manufacturing Scheme (ECMS)Turnover-linked: 1-10%; Capex: 25% on eligible FCIESDM companies, greenfield/brownfield, sub-assemblies, components
MOFPI - PMKSYCapital subsidy: 35% (General), 50% (Difficult areas), max INR 10 CrFood manufacturing and processing units
Startup India Initiative (Section 80-IAC)3-year tax holiday, 80% IPR rebate, seed fund up to INR 50LDPIIT-recognized startups within 10 years of incorporation
SEZ BenefitsDuty-free imports, tax exemptions, relaxed regulatory frameworkExport-oriented manufacturing and services units in 276+ operational SEZs

Key State Government Schemes

StateKey PolicyHeadline IncentiveApplicability
MaharashtraPSI 2019, Electronics Policy 2016, EV Policy 2025Up to 100% of FCI (revenue-linked)All manufacturing, ESDM, EV, tourism
Madhya PradeshIPP 2025, MSME Development 2025Up to 40-60% capital subsidy on FCILarge/mega units, MSME, IT/ESDM
GujaratInterest subsidy, Net SGST reimbursement7% interest subsidy, 80-100% SGST refundThrust sectors, large industries by taluka
KarnatakaIndustrial Policy 2025-30Up to 25% capital subsidy or 2.5% PLIESDM, aerospace, future mobility
Tamil NaduMSME & Industrial Policy 2024Capital subsidy, SGST refund, stamp duty waiverManufacturing, IT/ITES, EV

Scheme parameters are indicative and subject to periodic revision. Stratfield Partners provides current, verified guidance.

Why Stratfield Partners

We bring together strategic advisory, deep government networks, and hands-on execution capability that pure compliance firms cannot match.

Strategic Advisory, Not Just Compliance

We integrate incentive planning into your broader investment and growth strategy, ensuring every rupee of eligible benefit is identified and structured optimally.

Deep Government & Regulatory Networks

Extensive experience across public affairs, government relations, and regulatory advisory. We understand how policy is made, interpreted, and implemented at both Central and State levels.

Cross-Sector Expertise

We serve clients across healthcare, automotive, chemicals, technology, aviation, agriculture, and manufacturing, giving us unmatched breadth across incentive landscapes.

Realization-Focused Methodology

Our engagement model is designed around actual disbursement, not just approval letters. We stay with you through the entire incentive tenure, from application to the last claim.

Policy Intelligence & Advocacy Capability

Through our Public Affairs and Regulatory Standards practices, we offer the ability to engage with policymakers on scheme design, extensions, exemptions, and customized packages.

BIS & Regulatory Standards Integration

For manufacturing clients, we integrate incentive advisory with BIS/QCO compliance, ensuring regulatory readiness and incentive eligibility are aligned from the start.

Ready to Unlock Your Incentive Entitlements?

Let us map your eligibility, structure your applications, and recover what you are owed.

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