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Core Purpose

Notification under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry, partially amending the scheme's tenure and Determined Sales Value threshold provisions.

Detailed Summary

S.O. 5487(E), dated 29 December 2023, Ministry of Heavy Industries, partially modifies the Scheme Guidelines for the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry, originally notified vide S.O. No. 3947(E) dated 23 September 2021, effective from the date of publication. Paragraph 3 is amended to state that incentive applies starting Financial Year 2023-24, disbursed the following financial year (2024-25 onward), for a total of five consecutive financial years. Sub-paragraphs 10.3.1.V and 10.3.2.V are amended so that an approved company failing, in a given year, to meet the required increase in Determined Sales Value over the first-year threshold (Rs. 125 crore under 10.3.1.V; Rs. 25 crore under 10.3.2.V) will not receive incentive for that year, but remains eligible in subsequent years if it meets a threshold based on 10% year-on-year growth over the first-year threshold, for four consecutive years from FY 2023-24, intended to provide a level playing field for automotive and non-automotive investor companies and protect applicants who front-loaded investment. File No. 12(11)/2020-AEI (21370); signed by Hanif Qureshi, Joint Secretary.

Full Text

8003 GI/202 3 (1) EXTRAORDINARY PART II —Section 3 —Sub-section ( ii) PUBLISHED BY AUTHORITY No. 5254] NEW DEL HI, FRIDAY , DECEMBER 29, 2023/ PAUS HA 8, 1945 CG-DL-E-29122023-250974 [फा. सं. 12(11)/2020 -AEI (21370)] MINISTRY OF HEAVY INDUSTRIES NOTIFICATION (AMENDMENT) New Delhi, the 29 th December, 2023 S.O. 5487 (E).—In partial mod ification of the Scheme Guidelines for the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component industry which was notified by the Ministry of Heavy Industries vide S.O. No. 3947 (E) dated 23rd September 2021, the following amendments are made with effect from date of its publication in the Official Gazette: - Amendment of paragraph ‘3’ to be read as under: Tenure of the Scheme: Incentive under the scheme will be applicable, starting from the Financial Year 2023 - 24 which will be disbur sed in the following Financial Year i.e. 2024 -25 and so on for a total of five (05) consecutive Financial Years. Amendment of sub -paragraph ‘10.3.1.V’ to be read as under: In case the approved company fails to meet the threshold for increase in Determined Sales Value over the threshold for the first year i.e. ₹125 crore, for any given year, it will not receive any incentive for that year. However, it will still be eligible to receive the benefits under the scheme in the next year if it meets the threshold f or that particular year calculated on the basis of 10% YoY growth over the threshold for the first year and thereafter for 4 consecutive years from when the incentive under the scheme becomes applicable (FY 2023 -24). This provision will provide level playi ng field to all approved companies viz. existing Automotive and New Non -Automotive Investor companies as well as safeguard the approved applicants who preferred to front load their investment, against adversities of the market demand conditions in subseque nt years of the scheme. Amendment of sub -paragraph ‘10.3.2.V’ to be read as under: In case the approved company fails to meet the threshold for increase in Determined Sales Value over the threshold for the first year i.e. ₹ 25 crore, for any given year, it will not receive any incentive for that year. However, it will still be eligible to receive the benefits under the scheme in the next year if it meets the threshold for that particular year calculated on the basis of 10% YoY growth over the threshold for the first year and thereafter for 4 consecutive years from when the incentive under the scheme becomes applicable (FY 2023 -24). This provision will provide level playing field to all approved companies viz. existing Automotive and New Non -Automotive Invest or companies as well as safeguard the approved applicants who preferred to front load their investment, against adversities of the market demand conditions in subsequent years of the scheme. [F. No. 12(11)/2020 -AEI (21370)] HANIF QURESHI, Jt. Secy. Uplo aded by Dte. of Printing at Government of India Press, Ring R oad, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.

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