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Production Linked Incentive Scheme For Automobile And Auto Component Industry

The government of India has launched the scheme “Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry” in India to enhance India’s Manufacturing Capabilities for Advanced Automotive Products.

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About This Scheme

The government of India has approved the scheme “Production Linked Incentive Scheme for Automobile and Auto Components Industry” in India to enhance India’s Manufacturing Capabilities for Advanced Automotive Products. The “Production Linked Incentive Scheme for Automobile and Auto Components Industry” proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale, and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products. Scheme Components: The scheme consists of two components incentivizing incremental sales of automobile and auto components related to Advanced Automotive Technology. 1. Champion OEM Incentive Scheme: The incentive scheme targeted to address the cost disabilities related to Advanced Automotive Technology vehicles faced by OEMs. The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments – 2 wheelers, 3-wheelers, passenger vehicles, commercial vehicles, Tractors, Automobiles meant for Military use, and any other Advanced Automotive Technology vehicle as prescribed by MHI depending upon technical developments. 2. Component Champion Incentive Scheme: The ‘Component Champion’ Incentive scheme is aimed at identifying and incentivizing Auto component champions that can achieve the global scale of operations and become ‘Automotive Champions’ for the auto-component manufacturing sector related to Advanced Automotive Technology. Eligible Product: 1. Pre-approved Advanced Automotive Technology Vehicles and pre-approved Advanced Automotive Technology Components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2- Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles, and tractors including automobiles meant for military use. 2. The list of Advanced Automotive Technology Vehicles and Advanced Automotive Technology Components will be prescribed and can be amended by MHI from time to time depending upon technological developments.

Benefits

₹10000.0 Cr

The approved applicants will be entitled to receive incentives (% benefit) subject to meeting other conditions of the scheme:

1. Incentive Slabs for Champion OEM and New Non-Automotive (OEM) Investor company:

Determined Sales Value (in ₹ Crore)	Incentives (%age of Determined Sales Value)
<= 2,000	13%
> 2,000 to 3,000	14%
> 3,000 to 4,000	15%
> 4,000	16%
Cumulative Determined Sales Value of ₹10,000 Crore over 5 years	Additional 2%

2. Incentive slab for Component Champion and New Non-Automotive (Component) Investor Company:

Determined Sales Value (in ₹ Crore)	Incentives (%age of Determined Sales Value)
<= 250	8%*
> 250 to 500	9%*
> 500 to 750	10%*
> 750	11%*
Cumulative Determined Sales Value of ₹1,250 Crore over 5 years.	Additional 2%
Battery Electric vehicles & Hydrogen fuel cell vehicles components	Additional 5%

*Multiplied by a factor of 0.9 in the fifth year for eligible sales relating to Internal Combustion Engine (ICE) vehicle components.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
Certificate of Incorporation (Issued by ROC)
✦
Memorandum & Articles of Association (Submitted to ROC)
✦
PAN Card
✦
Import Export Code (IEC) Registration Certificate
✦
Letter of Authorization by Board of Directors or Managing Director or Equivalent (incl. subsidiary(ies))
✦
Certificate from the Company Secretary of the Applicant / Managing Director for Credit History (incl. subsidiary(ies))
✦
CIBIL Report of the Company (incl. subsidiary(ies))
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Business Profile/ Corporate Presentation of the Applicant (incl. subsidiary(ies))
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GST Registration Certificate (incl. subsidiary(ies))
✦
Shareholding Pattern (Latest submitted with ROC and certified by the Company Secretary of the company or in case the applicant is not having any 'Company Secretary' - by the Managing Director) (incl. subsidiary(ies))
✦
Profile of Directors
✦
Annual Report of Holding Company
✦
Self-Certification on Revenue/ Investment/ Net worth from each of the Group Company (ies) whose credentials have been considered
✦
Financial Details of Subsidiary(ies)
✦
Project Report/ Business Plan (incl. for Subsidiary(ies))
✦
Application Fee Payment Proof

✦ Required ◦ Optional

How to Apply

OOnline

The window for receiving applications through the Notice Inviting Applications will be for a period of 60 days.

Step 01: The applicant companies are required to submit an application along with financial & supporting documents.

Step 02: All applications will be submitted through an online portal maintained by the PMA. https://pliauto.in/

Step 03: Applicants need to "Sign in" using their login credentials and apply for the scheme. https://pliauto.in/login

Step 04: The Application Form along with details of all necessary supporting documents, to be submitted at the time of application.

Step 05: A non-refundable application fee would be payable for each application.

Step 06: Upon successful submission of an application, PMA will issue a unique Application ID to the applicant for all future references pertaining to the Scheme.

Note 01: The PMA will process the applications and make appropriate recommendations for approvals under the Scheme.

Note 02: MHI will consider applications, as recommended by PMA through the appropriate channel, for approval under the Scheme.

Note 03: All the applications will be finalized within 60 days from the date of submission of applications or receipt of clarification sought, if any.

Note 04: After receiving approval, the PMA will arrange to issue a letter to the selected applicant within 5 working days, communicating approval under the Scheme.

Note 05: If a selected applicant is found to be ineligible at any stage, or if it has not complied with notifications, orders, guidelines etc. of the Scheme, the envisaged incentive claim of such selected applicant shall be forfeited or recovered with interest, if already paid.

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Quick Info

Level: Central Government
Max benefit: ₹10000.0 Cr