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DLI

Design Linked Incentive Scheme

Reimburses up to 50% of chip-design spend (capped at ₹15 crore) and then pays 4–6% of net sales for five years.

What you get

Product design incentive up to 50% of eligible expenditure, capped ₹15 crore · deployment incentive 6%–4% of net sales, capped ₹30 crore

Nodal ministry

Ministry of Electronics & Information Technology (MeitY)

Support type

Mixed

Best suited for

Prototype / PoC · Growth / Scaling · Market Access & IP

Typical timeline

Applications and approvals through the DLI portal

What this scheme actually is

DLI is the most commercially valuable semiconductor scheme available to an Indian startup because it pays twice — once on the design spend, and again on the revenue that design generates. Alongside the money it provides access to EDA tools, IP cores, MPW prototyping and post-silicon validation, which are individually beyond most startup budgets.

Implementing agency: C-DAC / India Semiconductor Mission

What the scheme sets out to do

Catalyse a strong, self-reliant chip design ecosystem under the Semicon India Programme
Provide financial incentives and access to advanced design infrastructure for domestic startups and MSMEs

Who can apply

Domestic companies, startups and MSMEs engaged in semiconductor design or semiconductor-linked design
Target areas include ICs, chipsets, SoCs, systems, IP cores and semiconductor-linked designs
Applicants claiming incentives must retain domestic status — more than 50% beneficial ownership by resident Indian citizens or Indian companies ultimately owned and controlled by resident Indians — for 3 years after claiming

What you get

Chip Design Infrastructure Support: access to EDA tools, IP cores, MPW prototyping and post-silicon validation
Product Design Linked Incentive: reimbursement of up to 50% of eligible expenditure, capped at ₹15 crore per application
Deployment Linked Incentive: 6% to 4% of net sales turnover over 5 years, capped at ₹30 crore per application

How to apply, step by step

  1. 1

    Confirm and protect domestic status

    More than 50% beneficial ownership by resident Indians must hold for three years after you claim. A foreign-led funding round inside that window can cost you the incentive — model this before you raise.

  2. 2

    Register on the DLI portal

    Application, tracking and electronic approvals all run through chips-dli.gov.in.

  3. 3

    Document eligible expenditure rigorously

    Reimbursement depends on a clean, auditable expenditure trail against defined eligible heads. Build the accounting for this from day one, not at claim time.

  4. 4

    Claim the deployment incentive on net sales

    Once the product sells, the deployment-linked incentive runs for five years on certified net sales.

How Company Avenue Advisory helps

What we actually do on a DLI mandate

Ownership-structure planning so a funding round does not breach the 3-year domestic-status condition
Expenditure accounting and audit trail built to survive a reimbursement claim
Net-sales certification and claim documentation for the deployment-linked incentive
IP protection on the designs the incentive is funding

No consultant can guarantee a sanction — that decision sits with the evaluating committee, bank or incubator. We commit to an honest eligibility view, an application built to the evaluator’s format, filing inside the window and a documented follow-up cadence. That is stated in every engagement letter we sign.

Official sources

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