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.
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.