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Core Purpose

Notification amending the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI-AUTO), originally notified vide S.O. 3946(E) dated 23rd September 2021.

Detailed Summary

The Ministry of Heavy Industries, via S.O. 5486(E) dated 29th December 2023, partially modifies the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component industry (PLI-AUTO) notified vide S.O. 3946(E) dated 23rd September 2021, with effect from the date of publication. The amendments revise sub-paragraphs 3.3.1.1.i, 6.4.IV, 3.3.1.1.ii, 3.3.2.3.V and 3.3.3.3.V to specify that incentive disbursement starts from Financial Year 2023-24 (disbursed in 2024-25) for five consecutive financial years ending 31/03/2028, sets sales-value growth thresholds of Rs.125 crore and Rs.25 crore respectively with a 10% year-on-year growth condition for continued eligibility, and revises Table 3 (Incentive Outlay) to show a total indicative incentive of Rs.25,938 crore disbursed across Financial Years 2024-25 through 2028-29 (Rs.604 crore, Rs.3,150 crore, Rs.5,925 crore, Rs.7,199 crore and Rs.9,060 crore respectively); the notification is signed by Hanif Qureshi, Joint Secretary, under F. No. 12(11)/2020-AEI.

Full Text

8001 GI/202 3 (1) EXTRAORDINARY PART II —Section 3 —Sub-section ( ii) PUBLISHED BY AUTHORITY No. 5253] NEW DEL HI, FRIDAY , DECEMBER 29, 2023/ PAUS HA 8, 1945 CG-DL-E-29122023-250975 2023 -24 2024 -25 604 2024 -25 2025 -26 3,150 2025-26 2026 -27 5,925 2026 -27 2027 -28 7,199 2027 -28 2028 -29 9,060 क ु ल 25,938 [फा. सं. 12(11)/2020 -AEI (21370)] MINISTRY OF HEAVY INDUSTRIES NOTIFICATION (AMENDMENT) New Delhi, the 29 th December, 2023 S.O. 5486 (E).—In partial mo dification of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component industry (PLI -AUTO) which was notified by the Ministry of Heavy Industries vide S.O. No. 3946 (E) dated 23rd September 2021, the following amendments are made with effect from date of its publication in the Official Gazette: - Amendment of sub -paragraph ‘3.3.1.1.i’ & ‘6.4.IV’ to be read as under: Incentive under the scheme will be applicable, starting from the Financial Year 2023 -24 which will be disbursed in the fo llowing Financial Year i.e. 2024 -25 and so on for a total of five (05) consecutive Financial Years. Amendment of sub -paragraph ‘3.3.1.1.ii’’ to be read as under: An approved applicant shall be eligible for benefits for 5 consecutive Financial Years but no t beyond for the Financial Year ending 31/03/2028 . Amendment of sub -paragraph ‘3.3.2.3.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 c rore, 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 gr owth 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 a nd 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 subsequent years of the scheme. Amendment of sub -paragraph ‘3.3.3.3.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 w ill 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 w hen 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 Investor companies as well as safeguard the approved applicants wh o preferred to front load their investment, against adversities of the market demand conditions in subsequent years of the scheme. Amendment of ‘Table 3: Incentive Outlay’ of sub -paragraph ‘4.1’ to be read as under : Applicable Incentive (Financial Year) Disbursement of Incentive (Financial Year) Total Indicative Incentive (₹ Crore) 2023 -24 2024 -25 604 2024 -25 2025 -26 3,150 2025 -26 2026 -27 5,925 2026 -27 2027 -28 7,199 2027 -28 2028 -29 9,060 Total 25,938 [F. No. 12(11)/2020 -AEI (21370)] HANIF QURESHI, Jt. Secy. Uploaded 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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