According to press release on 01.01.2024, the Union Ministry of Heavy Industries has announced a one-year extension of the Performance-Linked Incentive (PLI) scheme for the automobile and auto components industries in India. This decision has been made after receiving the approval of the Empowered Group of Secretaries (EGoS).
Following the approval of the Empowered Group of Secretaries (EGoS), the Ministry of Heavy Industries has introduced partial amendments to the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, along with corresponding changes to the scheme’s guidelines. These modifications, which take effect from the date of publication in the Official Gazette, are intended to enhance clarity and flexibility within the scheme.
Additionally, the revised amendments specify that in cases where an approved company falls short of achieving an increase in Determined Sales Value beyond the initial year’s threshold, it will not be eligible for incentives in that particular year.
Nonetheless, the company remains eligible for benefits in the subsequent year if it attains the threshold, determined by a 10% year-on-year growth over the first year’s threshold. This provision is designed to establish fairness among all approved companies and protect those that opted for front-loading their investments, maintaining a balanced playing field.
The scheme’s total outlay has been increased to Rs 25,938 crore. Under the amended scheme, incentives will now be applicable from the financial year 2023-24 to 2027-28, extending beyond the previous tenure of FY23 to FY27. The disbursement of incentives is scheduled for the financial year 2024-25. Approved applicants will be eligible for benefits for five consecutive financial years, but not beyond March 31, 2028, according to the official release.
This extension and enhancement aim to stimulate investment, production, and employment in the mentioned industries.
By- V Sharma
