The Government Extended The Tenure Of PLI Scheme By One Year

Utkarsh Classes Last Updated 02-01-2024

The Government Extended The Tenure Of PLI Scheme By One Year

Government Scheme 3 min read

The Ministry of Heavy Industries has extended the deadline for the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components by one year with partial modifications. This decision was taken after getting the approval of the Empowered Group of Secretaries (EGoS).

Minor amendments were made to the guidelines of the scheme:

In the updated plan, the incentive will be valid for a continuous period of five fiscal years, commencing from the financial year 2023-24.
The distribution of incentives will take place in the next financial year 2024-25.
An approved applicant will be eligible for benefits under the scheme for five consecutive financial years.
Also, if a company cannot increase the fixed selling price more than the previous year's limit, then it will not get any incentive for that year.
The amendment also includes changes in the table showing the incentive outlay, with the total indicative incentive amount being Rs 25,938 crore.

Production-Based Incentive Scheme (PLI):

The PLI scheme was conceived to enhance domestic manufacturing capacity as well as lead to higher import substitution and employment generation.
The scheme was launched in March 2020.
The scheme initially targeted three industries:
1. Mobile and allied components manufacturing
2. Electrical component manufacturing
3. Medical devices
Later, it was extended to 14 areas.
These 14 areas are Mobile Manufacturing, Medical Devices Manufacturing, Automobiles & their components, Pharmaceuticals, Drugs, Special Steels, Telecom and networking Products, Electronic Products, Home Appliances (ACs & LEDs), Food Products, Textile Products, Solar PV Modules, Advanced Chemical Cells ( ACC) Battery and Drone and its components.
The main objective of this scheme is to reduce dependence on imports, increase exports and achieve self-reliance.
In the PLI scheme, domestic and foreign companies get financial benefits based on a percentage of their revenue for five years for manufacturing in India.

FAQ

Ans - The government has extended the tenure of the PLI scheme by one year.

Ans - March 2020

Ans- 14 areas

Ans - The PLI scheme was conceived to enhance domestic manufacturing capacity as well as lead to higher import substitution and employment generation.