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Boosting production and making India self-reliant
The Production Linked Incentive (PLI) scheme, aimed to boost domestic manufacturing under the government’s Atmanirbhar Bharat initiative, was introduced in March 2020. In Budget 2021-22, 13 sectors were identified for an outlay of INR 1.97 lakh crore. So far, the scheme has been approved for nine sectors: automobiles and auto components, advance chemistry cell (ACC) battery, textile, speciality steel, white goods, electronic or technology products, pharmaceuticals drugs, telecom and networking, food processing and high-efficiency solar PV modules. The scheme is aimed at:
Aimed to cover maximum players in the industry, a total incentive of INR 10,900 crore has been planned for the sector. The scheme will be implemented over a six-year period, starting 2021-22, and is applicable only for products manufactured in India.
With a total planned incentive of INR 15,000 crore, the scheme is aimed at creating champions to penetrate global value chains. It will be implemented over a nine-year period, starting 2020-21 and is only for applicants registered in India.
Applicable for manufacturing in India, the sector has received a total incentive of INR 18,100 crore. Under the scheme, a manufacturing facility will be commissioned within two years and incentives will be disbursed over a five-year period.
With a stringent rule to cover maximum players of the industry, the sector has bagged incentives worth INR 6,238 crore over FY 2022-29. To begin with, application under scheme will be opened for six months, which may be extended further.
Eligible for any auto company with a turnover of INR 1,000 crore, the scheme is aimed at covering maximum industry players. The sector has, by far, received the highest outlay of INR 57,042 crore, of which INR 18,100 crore is for original equipment manufacturer (OEMs) in electric vehicle (EV) space for advanced chemistry cell batteries.
At Grant Thornton Bharat, we deliver the greatest value to our clients by offering end-to-end services and solutions. We can help you evaluate eligibility criteria (minimum investment/sales), prepare, review and file applications, co-ordinate and follow up with government/nodal agencies, conduct periodic reviews and enable disbursement of funds.
Saket Mehra shares his thoughts with Mobility Outlook on PLI scheme approved by the Indian government for auto industry is investment-centric.
With an outlay of INR 57,042 crore, the scheme is expected to spur manufacturing and growth of the sector and enhance its global presence