The performance-linked incentive (PLI) scheme for automobile and auto components industries has been extended by one year, the Union Ministry of Heavy Industries said on January 1. The total outlay of the scheme has been increased to Rs 25,938 crore, it added.
The incentives as part of the scheme will now be available from FY24 to FY28, as compared to the incentives available for FY23 to FY27 under the previous tenure of the scheme.
"Under the amended scheme, the incentive will be applicable for a total of five consecutive financial years, starting from the financial year 2023-24. The disbursement of the incentive will take place in the following 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," an official release stated.
"The amendment also includes changes to the table indicating the incentive outlay, with the total indicative incentive amounting to Rs 25,938 crore," it added.
Also Read: Ola Electric first e-scooter company to get PLI nod
The decision to extend the PLI scheme was taken following the Empowered Group of Secretaries' nod, the heavy industries ministry noted. The decision is expected to "provide greater clarity and support to the sector, promoting growth and competitiveness", it said.
The ministry has also given a nod to an amendment to the scheme, according to which an applicant company will not receive any incentive for the year if it "fails to meet the threshold for an increase in Determined Sales Value over the first year's threshold, for that year".
However, the company will still be eligible for benefits in the next year if it meets the threshold calculated on the basis of a 10 percent year-on-year growth over the first year's threshold, the government clarified.
This provision aims to ensure a level playing field for all approved companies and safeguard those who preferred to front-load their investments, it further stated.
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