New Delhi, Jan 2 (KNN) The Ministry of Heavy Industries has extended the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year, following approval from the Empowered Group of Secretaries (EGoS), on Monday.

“In alignment with EGoS approval, partial amendments have been made to the PLI Scheme and its guidelines to enhance clarity and flexibility,” the ministry said in a release.

The amended scheme spans five consecutive financial years, commencing from 2023-24, with incentive disbursement in the subsequent financial year (2024-25).

Approved applicants can benefit for five consecutive financial years, not exceeding the financial year ending on March 31, 2028.

The revised provisions specify that companies failing to meet the determined sales value threshold won't receive incentives for that year.

“However, eligibility persists in the following year if the threshold is met based on a 10 per cent year-on-year growth over the initial year's threshold,” the government explained.

These changes aim to establish fair competition among approved companies and protect those opting for front-loaded investments.

Additionally, amendments to the incentive outlay table indicate a total indicative incentive of Rs. 25,938 crore.

The overall objective of these modifications is to bring greater clarity and support to the Automobile and Auto Component Industry, fostering growth and competitiveness.

(KNN Bureau)