Decision made on approval from Empowered Group of Secretaries, says Ministry
The Ministry of Heavy Industries has extended tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year and made changes to the table indicating the incentive outlay, with the total indicative incentive amounting to Rs.25,938 crore.
This decision has been made after receiving the approval of the Empowered Group of Secretaries (EGoS), the Ministry of Heavy Industries said on 1 Jan 2024.
In pursuance of the approval of EGoS, the Ministry said incentives will be applicable for a total of five consecutive financial years, starting from the financial year 2023-24, and disbursement 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 31 March 2028.
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, said the Ministry.
However, it will still be eligible for benefits in the next year if it meets the threshold calculated on the basis of 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.
These amendments to the PLI Scheme for the Automobile and Auto Component Industry and Guidelines of the Scheme are expected to provide greater clarity and support to the sector, promoting growth and competitiveness. Fiinews.com
