Production Linked Incentive Scheme For Automobile And Auto Component Industry

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, approved by the Government of India, is intended to strengthen domestic manufacturing of Advanced Automotive Products. It provides financial incentives to encourage local production and draw investment across the entire automotive manufacturing value chain. The scheme’s stated goals are to offset cost disadvantages, build economies of scale, and develop a dependable supply chain for Advanced Automotive Technology products. It also aims to create employment and support the industry’s shift towards higher value-added output.

The scheme operates through two distinct components. The Champion OEM Incentive Scheme targets Advanced Automotive Technology vehicles, including Battery Electric and Hydrogen Fuel Cell Vehicles across all segments. The Component Champion Incentive Scheme focuses on auto component manufacturers capable of achieving global scale in Advanced Automotive Technology components.

- Applications are to be submitted online via the official portal at [https://pliauto.in/](https://pliauto.in/). - To access the application form, applicants must log in using their credentials. - Each submission must include all required financial and supporting documents, as detailed in the application form and guidelines. - A non-refundable application fee applies to every application submitted. - Once the application is successfully submitted, the Project Management Agency (PMA) will assign a unique Application ID, to be used for all future correspondence regarding the Scheme. - The PMA will review the applications and forward suitable recommendations to the Ministry of Heavy Industries (MHI) for final decision. - MHI will evaluate and finalise applications within 60 days of submission or receipt of any requested clarifications. - Following approval, the PMA will send a formal approval letter to the selected applicant within 5 working days.

The Project Management Agency (PMA) will screen and evaluate each application. This assessment verifies adherence to all eligibility conditions, covering financial health, proposed investment outlays, and business plans for Advanced Automotive Technology manufacturing. Following this review, the PMA will prepare its recommendations for approval under the scheme.

These recommendations are forwarded through the designated channels to the Ministry of Heavy Industries (MHI), which holds the final approval authority. In its decision-making, the MHI may favour applicants who show a commitment to accelerating their investments within the scheme's timeframe, as determined by the Net Present Value (NPV) of the proposed investment.