Sarkari Yojana
Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry
About Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry
Run by the Ministry of Heavy Industries, Government of India, the “Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry” strengthens domestic manufacturing of advanced automotive technology products by offering financial incentives to automobile and auto component manufacturers. It drives investment, builds manufacturing capability, and reinforces the automotive value chain, while tackling cost disadvantages, building economies of scale, generating jobs, and developing a robust supply chain. The scheme runs through two components:
1. Champion OEM Incentive Scheme and 1. Component Champion Incentive Scheme.
Tenure of the Scheme:
The incentive applies to Determined Sales Value starting from Financial Year 2023-24, running for five consecutive financial years, through FY2027-28.
Scheme Overview
Central Government
Ministry of Heavy Industries
Business Entity
23 Sep 2021
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, applicants must satisfy the following conditions:
1. General Eligibility:
The applicant must be a company registered in…
The applicant must be a company registered in India.
The applicant must satisfy all eligibility criteria as…
The applicant must satisfy all eligibility criteria as reflected in audited financial statements as on 31 March 2021. 2. Existing Automotive Companies:
The applicant must have
The applicant must have:
Minimum global revenue
Minimum global revenue:
OEM → ₹10,000 crore
OEM → ₹10,000 crore
Component → ₹500 crore
Component → ₹500 crore
Global investment in fixed assets of at least
Global investment in fixed assets of at least:
OEM → ₹3,000 crore
OEM → ₹3,000 crore
Component → ₹150 crore 3
Component → ₹150 crore 3. New Non-Automotive Investor Companies:
The applicant must hold a minimum global net…
The applicant must hold a minimum global net worth of ₹1,000 crore.
The applicant must present a clear business plan…
The applicant must present a clear business plan for investing in India.
The applicant must earn revenue from advanced automotive…
The applicant must earn revenue from advanced automotive products.
The applicant must have had no revenue from…
The applicant must have had no revenue from automobile or component manufacturing as on 31 March 2021. 4. Investment Conditions (All Components):
The applicant must meet cumulative domestic investment targets…
The applicant must meet cumulative domestic investment targets counted from 1 April 2021.
The applicant must satisfy yearly investment milestones
The applicant must satisfy yearly investment milestones. 5. Champion OEM Component Specific Eligibility:
The applicant must manufacture vehicles built on advanced…
The applicant must manufacture vehicles built on advanced automotive technology.
The applicant must achieve at least 50% domestic…
The applicant must achieve at least 50% domestic value addition.
The applicant must secure product pre-approval from the…
The applicant must secure product pre-approval from the testing agency.
The applicant must reach a minimum sales threshold…
The applicant must reach a minimum sales threshold of ₹125 crore in the first year.
The applicant must post 10% year-on-year sales growth
The applicant must post 10% year-on-year sales growth. 6. Component Champion Specific Eligibility:
The applicant must manufacture advanced automotive components
The applicant must manufacture advanced automotive components.
The applicant must achieve at least 50% domestic…
The applicant must achieve at least 50% domestic value addition.
The applicant must secure product pre-approval
The applicant must secure product pre-approval.
The applicant must reach a minimum sales threshold…
The applicant must reach a minimum sales threshold of ₹25 crore in the first year.
The applicant must post 10% year-on-year growth
The applicant must post 10% year-on-year growth.
Benefits Provided
Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry provides the following benefits to eligible applicants:
Financial Incentive (General):
Incentives are calculated on incremental sales (Determined Sales…
Incentives are calculated on incremental sales (Determined Sales Value) of eligible products.
Total scheme outlay:
₹25,938 crore.- The incentive cap for an entire Group company(ies): ₹6,485 crore. Champion OEM Incentive Scheme:
Incentive rates
Incentive rates:
Up to ₹2,000 crore
Up to ₹2,000 crore: 13%
₹2,000–₹3,000 crore:14%
₹2,000–₹3,000 crore:14%
₹3,000–₹4,000 crore
₹3,000–₹4,000 crore: 15%
Above ₹4,000 crore
Above ₹4,000 crore: 16%
A further 2% incentive applies once cumulative sales…
A further 2% incentive applies once cumulative sales cross ₹10,000 crore.
This scheme covers Battery Electric Vehicles and Hydrogen…
This scheme covers Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles. Component Champion Incentive Scheme:
Incentive rates
Incentive rates:
Up to ₹250 crore
Up to ₹250 crore: 8%
₹250–₹500 crore
₹250–₹500 crore: 9%
₹500–₹750 crore
₹500–₹750 crore: 10%
Above ₹750 crore
Above ₹750 crore: 11%
A further 2% incentive applies once cumulative sales…
A further 2% incentive applies once cumulative sales cross ₹1,250 crore.
EV and Hydrogen components attract an additional 5%…
EV and Hydrogen components attract an additional 5% incentive.
Documents Required
Applicants should keep the following documents ready before starting the application:
1.1 Certificate of Incorporation (Issued by ROC) 1.1 Memorandum & Articles of Association (Submitted to ROC) 1.1 PAN Card 1.2 Import Export Code (IEC) Registration Certificate 2.2 A Letter of Authorization from the Board of Directors or Managing Director or Equivalent (incl. subsidiary(ies)) 2.4 A Certificate from the Company Secretary of the Applicant / Managing Director confirming Credit History (incl. subsidiary(ies)) 2.4 The Company's CIBIL Report (incl. subsidiary(ies)) 2.5 A Business Profile/ Corporate Presentation of the Applicant (incl. subsidiary(ies)) 2.6 GST Registration Certificate (incl. subsidiary(ies)) 2.7 Shareholding Pattern (the latest submitted with ROC, certified by the Company Secretary of the company or, where there is no Company Secretary, by the Managing Director) (incl. subsidiary(ies)) 2.8 Profile of Directors 3.2 Self-Certification covering: EAMC - Global group revenue from automotive and/or auto component manufacturing and Global Investment in fixed assets (gross block), > NNIC - Global net worth, including a break-up of details, especially for major/ indian entities, along with the major products considered. 3.2 Annual Report of the Holding Company 3.3 Self-Certification on Revenue/ Investment/ Net worth from each of the Group Companies whose credentials have been considered 4.1 Applicant's Annual Report for 2018-19 4.1 Applicant's Annual Report for 2019-20 4.1 Applicant's Annual Report for 2020-21 4.1 Financial Details of Subsidiary(ies) 4.1 Annual Report of Subsidiary(ies) for 2018-19 4.1 Annual Report of Subsidiary(ies) for 2019-20 4.1 Annual Report of Subsidiary(ies) for 2020-21 5.3 A Self-Certificate stating the Baseline Eligible Sales Value of Eligible products covered under the List of Advanced automotive technology products (Vehicles and Components) as per clause 15 of the scheme guidelines - for Financial Year 2019-20 -for applicant & subsidiary(ies). 7.1 Project Report/ Business Plan (incl. for Subsidiary(ies)) 8.2 Proof of Application Fee Payment Regulatory Treatment
Information on Licenses, permits and thirdparty approvals necessary…
Information on Licenses, permits and thirdparty approvals necessary to execute the project as per format attached herewith
The proposed process and timelines for obtaining clearances,…
The proposed process and timelines for obtaining clearances, plus an Undertaking for consent of audit/ verification (incl. Subsidiary(ies)) Integrity Undertaking (Format A)
2021-09-23
How to Apply
Online Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry through the online application process outlined below.
Application Process
Applications can be submitted online through the official website (Please login with your CIN as user ID).
Offline Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry through the offline application process outlined below.
The applicant submits the application form to the…
The applicant submits the application form to the nodal agency through the prescribed process.
The applicant ensures submission occurs before the specified…
The applicant ensures submission occurs before the specified deadline.
The application undergoes evaluation for eligibility and completeness
The application undergoes evaluation for eligibility and completeness.
An acknowledgement gets issued after initial scrutiny
An acknowledgement gets issued after initial scrutiny.
Final approval depends on compliance with scheme conditions
Final approval depends on compliance with scheme conditions.
Incentive claims get submitted annually for disbursement
Incentive claims get submitted annually for disbursement. Note: Documents should be uploaded on the portal: pliauto.in
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.