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- Mitsubishi Heavy Industries has extended this program for five consecutive fiscal years starting from fiscal year 2023-24.
The Ministry of Heavy Industry (MHI) has announced in the Official Gazette that the period of the Production-Linked Incentive Scheme (PLI) for automobiles and auto parts will be extended by one year. The decision was taken after receiving approval from the Empowered Group of Secretaries (EGoS). Auto manufacturing remains the core of India’s manufacturing base, accounting for over 40% of total manufacturing employment in the country by some estimates.
Following the approval of the EGoS, the Ministry of Heavy Industries has made some amendments to the Production-Linked Incentive (PLI) scheme and its guidelines for the automobile and auto parts industries. These amendments will come into effect from the date of publication in the Official Gazette and are intended to provide clarity and flexibility to the system.
Under the amended scheme, “this incentive will be applicable for a total of five consecutive financial years from 2023-24.” The incentive payments will be made in the next financial year 2024-25. The scheme also provides that an approved applicant will be eligible to receive benefits for five consecutive fiscal years, but not for more than the fiscal year ending March 31, 2028. It has been. ”
Additionally, the proposed amendments state that “if an approved company does not meet the criteria for an increase in sales determined above the criteria for the first year, it will not receive any incentives for that year.” However, you will still be eligible to receive benefits the following year if you meet the criteria, which is calculated based on a 10% year-over-year increase over the first year’s criteria. This provision is aimed at ensuring a level playing field for all approved companies and protecting those wishing to bring forward their investments. ”
The amendment also includes changes to the table showing incentive expenditure, bringing the total incentive amount to Rs 100 crore. 25,938 billion. These amendments to the PLI Scheme and Scheme Guidelines for the Automotive and Automotive Parts Industries are expected to provide clarity and support to the sector and foster growth and competitiveness.