Production Linked Incentive Scheme : Extended
The Ministry of Heavy Industries has recently extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year, with incentives now applicable for five consecutive financial years starting from 2023-24.
- This decision has been made after receiving the approval of the Empowered Group of Secretaries (EGoS).
- Companies failing to meet the first year’s sales increase threshold will not receive incentives for that year.
- However, they remain eligible for future benefits by achieving a 10% year-on-year growth over the first year’s threshold.
- Production Linked Incentive Scheme is a government initiative in India that offers financial incentives to companies based on their incremental sales of products manufactured in India.
- The scheme aims to drive domestic manufacturing, spur job creation, bolster exports, facilitate technology transfer, and diminish import reliance.
- The scheme is currently active in 14 key sectors: mobile manufacturing, manufacturing of medical devices, automobiles and auto components, pharmaceuticals, drugs, specialty steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) battery, and drones and drone components.
- The incentive rate varies depending on the sector and product category, but can range from 4% to 6% of incremental sales.
