The government has issued
notification regarding Production Linked Incentive (PLI) Scheme for automobile
& auto components. The scheme and its Guidelines have been notified in the
Gazette of India on Sept 23, 2021. Earlier, government approved the Production
Linked Incentive (PLI) Scheme for automobile and auto component industry on September
PLI Scheme for the auto sector envisages to overcome the cost disabilities of
the industry for the manufacture of Advanced Automotive Technology products in
India. The incentive structure will encourage industry to make fresh
investments for the indigenous global supply chain of Advanced Automotive
is estimated that over a period of five years, the PLI Scheme for Automobile
and Auto Components Industry will lead to fresh investments of over Rs 425
billion and will create additional employment opportunities for over 7.5 lakh
jobs. Further, this will increase India’s share in the global automotive trade.
PLI Scheme for the Auto sector is open to existing Automotive companies as well
as new Non-Automotive investor companies. The scheme has two components viz
Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The
scheme for Automobile and auto components will be implemented over a period of
five years starting from FY 2022-2023.
approved applicant shall be eligible for benefits for 5 consecutive Financial
Years. Financial Year 2019-20 shall be treated as the Base Year for calculation
of Eligible sales.
existing automotive company or its Group company(ies)will need to meet the
Basic Eligibility criteria to receive incentives. In case the company fails to
meet the cumulative domestic investment condition in any given year, it will
not receive any incentive for that year
even if the threshold for Determined sales value is achieved. However, it will
still be eligible to receive the benefits under the scheme in the
following years if it meets the cumulative domestic investment condition
defined for that year.
Some of the components of the scheme are: