Ministry of Heavy Industries Extends PLI Scheme for Automobiles, Auto Components
This decision comes following the approval of the Empowered Group of Secretaries (EGoS), signifying a strategic move to further support and boost the sector.
January 02, 2024. By Abha Rustagi
This decision comes following the approval of the Empowered Group of Secretaries (EGoS), signifying a strategic move to further support and boost the sector.
The Ministry of Heavy Industries has undertaken partial amendments to the existing PLI Scheme for the Automobile and Auto Component Industry, along with modifications to the guidelines of the scheme. These amendments, effective upon publication in the Official Gazette, are aimed at providing enhanced clarity and flexibility to the scheme.
Under the revised scheme, the incentive will be applicable for a total of five consecutive financial years, commencing from the financial year 2023-24. The disbursement of the incentive is scheduled for the subsequent financial year, i.e., 2024-25.
Notably, an approved applicant stands eligible for benefits for five consecutive financial years, with the cutoff set at the financial year ending on March 31, 2028.
Moreover, the amendments introduce a provision to address situations where an approved company falls short of meeting the threshold for an increase in Determined Sales Value in a particular year. In such cases, the company will not receive any incentive for that year.
However, it remains eligible for benefits in the following year if it fulfills the threshold criteria, calculated based on a 10 percent YoY growth over the initial year's threshold. This adjustment is designed to ensure fairness among approved companies, particularly those that chose to front-load their investments.
The updated incentive outlay, as outlined in the amended table, amounts to a total indicative incentive of INR 25,938 crore.
These amendments are anticipated to bring greater clarity and support to the PLI Scheme for the Automobile and Auto Component Industry, fostering growth and competitiveness within the sector.
please contact: contact@energetica-india.net.
Aman Mehtani
Founder & Group CEO
ADM Group Offers Smart, Sustainable Solutions for Global Automotive Industry
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix