The Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components has been renewed by the government for one year, subject to certain modifications. According to a statement from the Ministry of Heavy Industries, the incentive would be available under the revised plan for a total of five consecutive fiscal years, beginning with the fiscal year 2023–2024. The incentive will be paid out during the ensuing fiscal year, 2024–2025. Additionally, according to the programme, a candidate who is accepted will be able to receive benefits for five consecutive fiscal years, but not later than the fiscal year that ends on March 31, 2028.
A company that has been approved but does not meet the requirements for an increase in Determined Sales Value over the threshold for the first year will not get any incentive for that year, according to the revisions. It will still be qualified for benefits, nevertheless, if the requirements are met, in the following year. In addition to protecting those who opted to front-load their investments, this clause attempts to guarantee fairness for all authorised businesses.
The Ministry also stated that these changes are anticipated to boost the industry’s growth and competitiveness by giving it more clarity and support.