The government of India has extended the Production Linked Incentive (PLI) scheme for the automotive industry for another year with certain modifications.
In pursuance of the approval of Empowered Group of Secretaries (EGoS), the Ministry of Heavy Industries has made partial amendments to the scheme for providing clarity and flexibility.
Under the amended scheme, the incentive will be applicable for a total of 5 consecutive financial years, starting from the financial year FY2023-24, with the incentive disbursement to take place next year. The approved applicant(s) will be eligible for benefits for five consecutive financial years, but not beyond March 31, 2028.
Furthermore, if an approved company fails to meet the threshold for an increase in Determined Sales Value over the first year’s threshold, it will not receive any incentive for that year. However, it will still be eligible for benefits in the next year if it meets the threshold calculated on the basis of a 10% YoY growth over the first year’s threshold. This the government says will ensure a level playing field for all approved companies and safeguard those who prefer to front-load their investments.
The amendment also includes changes to the table indicating the incentive outlay, with the total indicative incentive amounting to Rs 25,938 crore.
