The problem is solved!!
It is pretty silly yet one of those untold siemens assumptions.
It was a wiring issue. If you look at the CPU 313C, it looks for DC+ on the input terminal but it also looks for DC+ on 1L+ terminal. I did not know that.. See, the LED comes on even if DC+ is not connected to 1L+ but the status is not displayed while monitoring..
Same issue with the outputs. If outputs are written, although it says a "true" status while monitoring the LED doesn't come on till DC+ and DC- are connected on 2L+ and 2M.
Thanks for all your help!!
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