Ministry of Heavy Industries Proposes Doubling Auto PLI Scheme Allocation to ₹5,800 Crore
The Ministry of Heavy Industries (MHI) has proposed doubling the allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto components to ₹5,800 crore for the upcoming financial year. The scheme, now in its third year, focuses on Zero Emission Vehicles (ZEVs) like battery electric and hydrogen fuel cell vehicles. Incentives are tied to achieving a Domestic Value Addition (DVA) of 50%. As manufacturing plants are now set up, the focus is shifting toward ramping up production, necessitating higher incentive payouts to eligible applicants.
Key Points
- The PLI scheme for the auto sector incentivizes products with at least 50% Domestic Value Addition (DVA).
- The scheme is specifically targeted at Zero Emission Vehicles (ZEVs), including electric and hydrogen fuel cell vehicles.
- The total planned outlay for the auto PLI scheme is ₹25,938 crore over its duration.
- Higher production levels in the third year of the scheme have led to the request for increased annual budget allocation.
Exam Facts
- Proposed allocation for FY 2025-26 is ₹5,800 crore.
- The scheme requires a minimum of 50% Domestic Value Addition (DVA).
- The total scheme outlay is ₹25,938 crore.
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