PLI scheme: Centre extends auto PLI by a year

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The centre has extended the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by a year. A statement from the Ministry of Heavy Industries (MHI) said this decision has been made after receiving the approval of the Empowered Group of Secretaries (EGoS).

These amendments aim to provide clarity and flexibility to the scheme. The incentive will now be applicable for five consecutive financial years, starting from fiscal 2023-24.

“Disbursement of the incentive will take place in the financial year 2024-25. The scheme also specifies that an approved applicant will be eligible for benefits for five consecutive financial years, but not beyond the financial year ending on March 31, 2028,” the statement said.

It has also been decided that if a 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. The company will still be eligible for benefits in the next year if it meets the threshold calculated with a 10% year-on-year growth over the first year’s threshold.

This provision aims to ensure a level playing field for all approved companies and safeguard those who preferred to front-load their investments, the statement added.

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