The Ministry of Heavy Industries (MHI) ON December 29, 2023, issued an amendment in the Guidelines for the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component industry.
The following amendments have been stated:
• The paragraph ‘3’ to be read as under:
Tenure of the Scheme: Incentives under the scheme will be applicable, starting from the Financial Year 2023-24 which will be disbursed in the following Financial Year i.e. 2024-25 and so on for a total of five (05) consecutive Financial Years.
• The sub-paragraph ‘10.3.1.V’ is to be read as under:
In case the approved company fails to meet the threshold for an 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 for that particular year calculated based on 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 a level playing field to all approved companies viz. existing Automotive and New Non-Automotive Investor companies as well as safeguard the approved applicants who prefer to front-load their investment, against adversities of the market demand conditions in subsequent years of the scheme.
This notification will come into force from December 29, 2023.
For further details, kindly refer to the document attached.
[Notification No S.O. 5487(E)]
