The Ministry of Heavy Industries has announced the extension of the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components industry by an additional year. The Gazette Notification comes after receiving approval from the Empowered Group of Secretaries (EGoS).
Partial amendments have been made to the PLI Scheme and its Guidelines to enhance clarity and flexibility. The amended scheme will be applicable for five consecutive financial years, starting from 2023-24, with the disbursement of incentives occurring in the subsequent financial year, 2024-25. Eligibility for benefits extends up to the financial year ending on March 31, 2028.
The amendments introduce provisions ensuring that companies failing to meet the determined sales value threshold for a specific year will not receive incentives for that year. However, they remain eligible for benefits in the following year if they achieve a 10% year-on-year growth over the initial threshold.
The incentive outlay, as indicated in the amendment, totals Rs. 25,938 crore. These changes are anticipated to provide increased clarity and support to the automobile and auto component sector, fostering growth and competitiveness.
