Production Linked Incentive Scheme For Automobile And Auto Component Industry

About This Scheme

Benefits

Eligibility

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  The applicant company or its Group company(ies) will need to meet the following common criteria to qualify and receive benefits under the Scheme:
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  Basic Eligibility Criteria:
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  For a company or its Group company(ies) with an existing presence in India or globally in the Automotive vehicle and components manufacturing business:
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  Eligibility CriteriaAuto OEM Auto-ComponentGlobal group Revenue (from automotive and/or auto component manufacturing)Minimum ₹ 10,000 croreMinimum ₹ 500 croreInvestmentGlobal Investment of Company or its Group Company(ies) in fixed assets (gross block) of ₹ 3,000 crores.Global Investment of Company or its Group Company(ies) in fixed assets (gross block) of ₹150 crores.Group Company(ies) shall mean two or more enterprises which, directly or indirectly, are in a position to:
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  Exercise twenty-six percent or more of voting rights in the other enterprise;
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  Appoint more than fifty percent of members of the Board of Directors in the other enterprise (As defined in the FDI Policy Circular of 2020).
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  For new non-automotive investor companies or its Group company(ies) that may want to participate in this scheme:
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  Eligibility CriteriaNew Non-Automotive investor company or its Group company(ies) (who are currently not in the automobile or auto component manufacturing business)Global net worth₹ 1000 crore based on audited financial statements for the year ending March 31, 2021.Committed investment in India over five year periodAs per Minimum New Domestic Investment Conditions mentioned below.<br>
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  Minimum New Domestic Investment Conditions: Cumulative New Domestic Investment Condition of Performance (₹.Crore)
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  Cumulative new domestic investment to be achievedChampion OEM (Except 2W &amp;amp;amp;amp; 3W)Champion OEM 2W &amp;amp;amp;amp; 3WComponent ChampionNew Non-Automotive Investor (OEM) company or its Group company(ies)New Non-Automotive investor (Component) company or its Group company(ies)Upto or before March 31, 2023 3001504030080Upto or before March 31, 2024800400100800200Upto or before March 31, 202514007001751400350Upto or before March 31, 202617508752201750440Upto or before March 31, 2027200010002502000500Note 01: An applicant company or its Group company(ies) must satisfy the entire eligibility criteria to be eligible under the scheme.
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  Note 02: Non-Automotive companies or its Group company(ies) can qualify for this scheme provided they present a clear business plan to invest in India and generate revenues from Advanced Automotive Technology vehicles or Advanced Automotive Technology components manufacturing.
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  Note 03: The applicant&amp;#39;s new Non-Automotive Investor company or its Group company(ies) will be eligible to claim incentive subject to meeting the cumulative minimum new domestic investment to be achieved for a particular year. The applicant will also have to meet the % Year-on-Year growth criteria from the minimum threshold fixed from the first year.
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  Note 04: An applicant new Non-Automotive Investor company or its Group company(ies) must satisfy the entire eligibility criteria.
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  Note 05: New investments should be made from the same legal entity as the one applying for the incentive.
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  Note 06: The approved Company is required to meet the cumulative investment condition for each year.
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  Note 07: In the event, any approved company meets the investment condition a few years before the end of the scheme; it will be eligible for incentives throughout the tenure of the scheme subject to meeting other conditions of the scheme.
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  Note 08: In case the approved company fails to meet the cumulative domestic investment condition in any given year, it will not receive any incentive for that year even if the threshold for Determined sales value is achieved. However, it will still be eligible to receive the benefits under the scheme in the following years if it meets the cumulative domestic investment condition defined for that year.
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  Note 09: Preference will be given to eligible companies or its Group company(ies) committing to front-load their investment during the scheme period. The proposed investment commitment will be evaluated by calculating the Net Present Value (NPV) of the investment using the bank rate as the discounting factor.

Required Documents

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  Certificate of Incorporation (Issued by ROC)
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  Memorandum & Articles of Association (Submitted to ROC)
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  PAN Card
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  Import Export Code (IEC) Registration Certificate
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  Letter of Authorization by Board of Directors or Managing Director or Equivalent (incl. subsidiary(ies))
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  Certificate from the Company Secretary of the Applicant / Managing Director for Credit History (incl. subsidiary(ies))
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  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))
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  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))
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  Profile of Directors
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  Annual Report of Holding Company
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  Self-Certification on Revenue/ Investment/ Net worth from each of the Group Company (ies) whose credentials have been considered
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  Financial Details of Subsidiary(ies)
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  Project Report/ Business Plan (incl. for Subsidiary(ies))
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  Application Fee Payment Proof

✦ Required ◦ Optional

How to Apply