Production Linked Incentive Scheme For Automobile And Auto Component Industry

The Government of India has approved a Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry. Its purpose is to expand India's manufacturing capacity for Advanced Automotive Products. Financial incentives are offered under the scheme to encourage domestic production and draw investment across the whole automotive manufacturing value chain.

The scheme sets out to offset cost disadvantages, help firms reach economies of scale, and build a dependable supply chain dedicated to Advanced Automotive Technology products. It also seeks to create employment and support the Automobile Industry's shift towards products with higher value addition.

Two components make up the scheme. The Champion OEM Incentive Scheme covers Advanced Automotive Technology vehicles, including Battery Electric and Hydrogen Fuel Cell Vehicles in all segments. The Component Champion Incentive Scheme extends incentives to auto component manufacturers capable of attaining global scale in Advanced Automotive Technology components.

- Submit applications online via the official portal at [https://pliauto.in/](https://pliauto.in/). - To open the application form, applicants must log in with their credentials. - Every application has to include the financial and supporting documents stipulated in the form and the guidelines. - Each application attracts a non-refundable fee. - Once an application is submitted successfully, the Project Management Agency (PMA) issues a unique Application ID, which must be quoted in all subsequent correspondence relating to the Scheme. - The PMA examines the applications and forwards suitable recommendations to the Ministry of Heavy Industries (MHI), which grants final approval. - MHI will assess and finalise applications within 60 days of submission, or of receiving any clarifications it has sought. - Following approval, the PMA sends the selected applicant a formal approval letter within 5 working days.

The Project Management Agency (PMA) screens and evaluates every application. It checks whether applicants meet the stated eligibility criteria, covering financial standing, investment commitments and business plans tied to Advanced Automotive Technology manufacturing. On the basis of this assessment, the PMA prepares recommendations for approval under the scheme and routes them through the appropriate channels to the Ministry of Heavy Industries (MHI).

The MHI takes the final call on approvals. In doing so, it may favour companies that commit to front-loading their investments during the scheme period, judged by the Net Present Value (NPV) of the investment proposed.