Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry
The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, launched by the Ministry of Heavy Industries, aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products. It provides financial incentives to attract investments and build a robust supply chain in the automotive sector.
What is the PLI Scheme for Automobile and Auto Component Industry?
This scheme is designed to incentivize incremental sales of automobiles and auto components related to Advanced Automotive Technology. It aims to address cost disabilities, create economies of scale, and enhance India's position in the global automotive value chain.
Key Objectives of the Scheme
· Boost Domestic Manufacturing: To promote and enhance domestic manufacturing of AAT products.
· Attract Investments: To attract significant investments in the automotive manufacturing value chain.
· Create Economies of Scale: To enable manufacturers to achieve economies of scale and reduce production costs.
· Build a Robust Supply Chain: To develop a strong and reliable supply chain for AAT products.
· Generate Employment: To create new employment opportunities in the automotive sector.
· Facilitate Value Chain Advancement: To move the automobile industry up the value chain into higher value-added products.
Eligibility Criteria for the Scheme
· Existing Automotive Companies: Companies with existing presence in India or globally in the automotive vehicle and components manufacturing business, meeting specified revenue and investment criteria.
· New Non-Automotive Investor Companies: Companies not currently in the automotive sector, with a specified global net worth and committed investment in India.
· Minimum New Domestic Investment: Companies must meet cumulative new domestic investment conditions within specified timelines.
· Eligible Products: Must manufacture pre-approved Advanced Automotive Technology Vehicles and Components, including Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
· Company Incorporation: Must be a company incorporated in India under the Companies Act, 2013.
Benefits of the Scheme
· Financial Incentives: Incentives based on determined sales value, ranging from 8% to 16% depending on the category and sales volume.
· Additional Incentives: Additional 2% incentive for achieving cumulative determined sales value targets.
· Enhanced Incentives: Additional 5% incentive for components of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
· Support for Advanced Technology: Encourages the production of AAT products, fostering technological advancement in the automotive sector.
How to Apply for the Scheme?
1. Online Application: Applications must be submitted through the online portal: https://pliauto.in/.
2. Registration and Login: Applicants need to sign in using their login credentials.
3. Document Submission: Submit the application form along with all required financial and supporting documents.
4. Application Fee: Pay the non-refundable application fee.
5. Application ID: Upon successful submission, receive a unique Application ID.
6. PMA Processing: The Project Management Agency (PMA) will process the applications and make recommendations.
7. MHI Approval: The Ministry of Heavy Industries will consider applications for approval.
Documents Required for Application
· Certificate of Incorporation
· Memorandum & Articles of Association
· PAN Card
· Import Export Code (IEC) Registration Certificate
· Letter of Authorization
· Company Secretary Certificate for Credit History
· CIBIL Report
· Business Profile/Corporate Presentation
· GST Registration Certificate
· Shareholding Pattern
· Profile of Directors
· Annual Report of Holding Company
· Self-Certification on Revenue/Investment/Net worth
· Financial Details of Subsidiaries
· Project Report/Business Plan
· Application Fee Payment Proof
FAQs About the Scheme
1. Who is eligible to apply?
Companies incorporated in India under the Companies Act, 2013, meeting specified revenue, investment, and product criteria.
2. What types of companies can apply?
Existing automotive companies and new non-automotive investor companies.
3. Are both Greenfield and Brownfield projects allowed?
Yes.
4. What is the application process?
Online, through the PLI Auto portal.
5. What are the incentive rates?
Vary based on sales volume and product category, ranging from 8% to 16%.
Why Should You Apply for the Scheme?
The PLI Scheme offers substantial financial incentives and support for companies investing in Advanced Automotive Technology. It provides a significant opportunity to enhance manufacturing capabilities, expand market presence, and contribute to the growth of the Indian automotive industry.
Conclusion
The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry is a transformative initiative aimed at propelling India's automotive sector to new heights. By providing financial incentives and fostering technological advancements, the scheme is set to create a robust and globally competitive automotive ecosystem in India.