• UGI USER
  • Jan 02, 2024
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Production Linked Incentive (PLI) scheme

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News

  • The Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components has been extended by the government by one year, subject to certain modifications.
  • The Ministry of Heavy Industries said in a statement that the incentive will be available under the revised plan for a total of five consecutive fiscal years, beginning with the fiscal year 2023–2024.
  • The incentive will be paid out during the ensuing fiscal year, 2024–2025. Additionally, according to the scheme, a candidate who is accepted will be able to receive benefits for five consecutive fiscal years, but not later than the fiscal year that ends on March 31, 2028.
  • According to the amendments, an approved company will not be eligible for an incentive for that year if it does not meet the threshold for an increase in Determined Sales Value over the threshold for the first year.
  • If it reaches the threshold, it will still be qualified for benefits the following year. This clause attempts to protect those who favored to front-load their investments and to guarantee fairness for all authorized businesses.
  • The Ministry went on to say that these changes should give the industry more clarity and support, encouraging expansion and competitiveness.

About PLI Scheme

  • The Union Budget 2021–22 unveiled the PLI scheme for 13 important sectors (now 14 that include ‘Drones’) in an effort to strengthen India’s manufacturing capabilities and exports that involve a total outlay of Rs 3 trillion.
  • Objectives: The program is designed to specifically increase domestic manufacturing in sunrise and strategic industries, decrease import costs and imports at a lower cost, enhance the cost competitiveness of goods produced domestically, boost exports, and increase domestic capacity.
  • Financial Benefits: Under the PLI scheme, companies, both foreign and domestic, can receive financial incentives for manufacturing in India, up to five years of production, based on a percentage of their total revenue.
  • The PLI Scheme’s sectors are (total 14): Mobile Manufacturing and Specified Electronic Components; Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients; Manufacturing of Medical Devices; Automobiles and Auto Components; Pharmaceuticals Drugs; Specialty Steel; Telecom & Networking Products; Electronic/Technology Products; White Goods (ACs and LEDs); Food Products; Textile Products: MMF segment and technical textiles; High-efficiency solar PV modules; Advanced Chemistry Cell (ACC) Battery; Drones and Drone Components.

 

Source: Newsonair

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