The heavy industries ministry informs about the Rs. 25,938 crore production linked incentive[PLI] for the auto sector, concentrated at enhancing domestic production of ultra-modern automotive technology products.
Its key aim includes overcoming cost disabilities, building economies of scale and making a vigorous supply chain in areas of modern automotive engineering products.
The scheme includes 2 elements – advanced automotive technology related to auto components and incentivizing incremental sales of automobiles.
A non-automotive company can be eligible for this scheme on the condition that they present a direct business roadmap to invest in India. Additionally, create revenues from advanced automotive technology vehicles or components manufacturing. Furthermore, if an approved company does not meet the accruing domestic investment setting in any said year. It will not receive any incentive for that year, whether or not the brink for determining sales value is achieved.
That said, it will still be qualified to collect the benefits in the following year. Considering it meets the accumulated domestic investment condition defined for the year. Starting from 2022-23, incentives will be relevant, which will be paid out in 2023-24 and further for 5 consecutive financial years.
An approved applicant will be eligible for benefits for 5 consecutive years but not past the year ending 31 March, 2027. The base year for the calculation of eligible sales value will be financial year 2019-20. Further, it said the threshold sales value for the first year is ₹125 crore in regard of all companies. Existing automotive and new non-automotive investor companies under this part of the scheme to get incentive.
The execution of the scheme will be through a nodal agency. This agency will act as a project management agency [PMA] and will be in charge of providing administrative, executive and fulfilment support and carrying out other duties as assigned by the ministry. For effectual operation and clear execution of the scheme, the detailed guidelines were also notified separately by the ministry.
To collect the incentives, the approved companies need to upload their annual claims under the scheme. Addition to the examined financial statements/ supporting documents, as certified by a C.A.