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December 18, 2024
Delhi- Ministry of Heavy Industries has announced an extension of the production-linked incentive (PLI) scheme for the automobile and auto components sectors, pushing the scheme's tenure to March 31, 2028. The revised Rs 25,938 crore output-linked incentive initiative is designed to stimulate domestic manufacturing of advanced automotive technology products and encourage investments in the automotive manufacturing value chain.
Originally applicable to determined sales value from the financial year 2022-2023 for five consecutive financial years until 2026-2027, the amended scheme will now cover five consecutive financial years from 2023-2024 to 2027-2028. The disbursement of incentives is scheduled to commence in the financial year 2024-2025.
The scheme comprises two components: the Champion OEM incentive scheme for battery electric and hydrogen fuel cell vehicles and the Component Champion incentive scheme for high-tech and high-value components. Incentives are awarded for products with a minimum domestic value addition of 50%.
Approval has been granted to 18 companies, including Maruti Suzuki India Ltd, Tata Motors, Hero MotoCorp, Bajaj Auto, and Ola Electric, under the Champion OEM category. Additionally, 67 companies have received approval under the Component Champion category of the scheme.
The amendments also outline that if an approved company fails to meet the threshold for an increase in determined sales value over the first year, it will not receive incentives for that year. However, eligibility for benefits in the subsequent year is retained if the company achieves the threshold, calculated based on a 10% year-on-year growth over the first year's threshold, according to the Ministry of Heavy Industries.
