The Ministry of Heavy Industries held a review meeting with stakeholders for the Production Linked Incentive (PLI) scheme for the automotive sector on August 29. The meeting, chaired by heavy industries minister Mahendra Nath Pandey, closed with the ministry accepting certain suggestions made by the auto industry, as well as announcing that the PLI scheme would be extended till FY2027-28 from FY 2026-27.
As per a PTI report, the Ministry accepted stakeholder suggestions to open additional agencies to test for ‘domestic value addition’ in a bid to accelerate the PLI clearing process. There are currently just two agencies that carry out ‘DVA’ testing with the components needing to meet a minimum value of 50 per cent localisation to meet PLI criteria. This number will go up to four agencies in the future. The MHI also accepted the suggestion to make the subsidy disbursal process a quarterly event. Pandey said that he hoped that the changes would help the PLI scheme gather steam.
The review meeting was attended by major automotive sector companies such as Tata Motors, Mahindra & Mahindra, OLA electric, Ashok Leyland, Hyundai Motor, Bosch, Toyota Kirloskar Auto Parts along with officials from MHI, NITI Aayog, ARAI, ICAT, GARC & NATRAX, SIAM and ACMA.
The Indian government is eyeing turning the Indian Auto Industry into the third largest in the world by 2030 with the PLI scheme expected to play a key part in the process.
With inputs from PTI
