This decision was made with the approval of the Empowered Group of Secretaries (EGoS) and represents a strategic move to further support and boost the sector.
The Ministry of Heavy Industries has initiated some amendments to the existing PLI scheme for the automobile and auto parts industry, as well as amendments to the guidelines for the scheme. These amendments will come into force upon publication in the Official Gazette and are intended to increase clarity and flexibility in the regime.
Under the revised regime, this incentive will be applicable for a total of five consecutive financial years starting from financial year 2023-24. Incentive payments are scheduled for the next financial year, i.e. in 2024-25.
Specifically, approved applicants will be eligible to receive benefits for five consecutive fiscal years, up to a deadline set for the fiscal year ending March 31, 2028.
Additionally, the amendments introduce provisions to address situations in which an approved company does not meet the fixed turnover growth criteria for a particular year. In this case, the company will not receive any incentives for that year.
However, you may still be eligible for benefits the following year if you meet the threshold criteria, which is calculated based on a 10% year-over-year increase over the first year’s threshold. This adjustment aims to ensure fairness among approved companies, especially those that have chosen to bring forward their investments.
The updated incentive expenditure amounts to a total incentive of Rs 25,938 crore, as outlined in the revised table.
These amendments are expected to bring clarity and support to the PLI scheme for the automotive and auto parts industry, promoting growth and competitiveness in this sector.