Sarkari Yojana
Production Linked Incentive Scheme For Automobile And Auto Component Industry
About Production Linked Incentive Scheme For Automobile And Auto Component Industry
The Government of India approved the “Production Linked Incentive Scheme for Automobile and Auto Components Industry” to strengthen India’s manufacturing capabilities for Advanced Automotive Products. This scheme puts forward financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and draw investment into the automotive manufacturing value chain, with its main goals being to overcome cost disabilities, build economies of scale, and establish a robust supply chain for Advanced Automotive Technology products — while also generating employment and helping the Automobile Industry move up into higher value-added products. Scheme Components: The scheme has two components that incentivize incremental sales of automobile and auto components tied to Advanced Automotive Technology. 1. Champion OEM Incentive Scheme: This targets the cost disabilities OEMs face around Advanced Automotive Technology vehicles. It is a ‘sales value linked’ scheme, covering Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles across all segments – 2 wheelers, 3-wheelers, passenger vehicles, commercial vehicles, Tractors, Automobiles meant for Military use, and any other Advanced Automotive Technology vehicle MHI prescribes as technology evolves. 2. Component Champion Incentive Scheme: This identifies and incentivizes Auto component champions capable of reaching global scale and becoming ‘Automotive Champions’ in auto-component manufacturing tied to Advanced Automotive Technology. Eligible Product: 1. Pre-approved Advanced Automotive Technology Vehicles and pre-approved Advanced Automotive Technology Components across all vehicles, CKD/SKD kits, and Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles, and tractors, including automobiles meant for military use. 2. MHI prescribes, and may amend from time to time, the list of Advanced Automotive Technology Vehicles and Components as technology develops.
Scheme Overview
Central Government
Ministry of Heavy Industries
Ministry Of Heavy Industries
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive Scheme For Automobile And Auto Component Industry, applicants must satisfy the following conditions:
The applicant company or its Group company(ies) must…
The applicant company or its Group company(ies) must meet the following common criteria to qualify for and receive benefits under the Scheme: Basic Eligibility Criteria: 1. For a company or its Group company(ies) already present in India or globally in Automotive vehicle and component manufacturing: Eligibility CriteriaAuto OEM Auto-ComponentGlobal group* Revenue (from automotive and/or auto component manufacturing)Minimum ₹ 10,000 croreMinimum ₹ 500 croreInvestmentGlobal Investment of Company or its Group* Company(ies) in fixed assets (gross block) of ₹ 3,000 crores.Global Investment of Company or its Group* Company(ies) in fixed assets (gross block) of ₹150 crores.*Group Company(ies) means two or more enterprises that, directly or indirectly, can: Exercise twenty-six percent or more of voting rights in the other enterprise; Or Appoint more than fifty percent of members of the Board of Directors in the other enterprise (As defined in the FDI Policy Circular of 2020). 2. For new non-automotive investor companies or their Group company(ies) wanting to participate in this scheme: Eligibility CriteriaNew Non-Automotive investor company or its Group company(ies) (who are currently not in the automobile or auto component manufacturing business)Global net worth₹ 1000 crore based on audited financial statements for the year ending March 31, 2021.Committed investment in India over five year periodAs per Minimum New Domestic Investment Conditions mentioned below.
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3. Minimum New Domestic Investment Conditions: Cumulative New Domestic Investment Condition of Performance (₹.Crore) Cumulative new domestic investment to be achievedChampion OEM (Except 2W & 3W)Champion OEM 2W & 3WComponent ChampionNew Non-Automotive Investor (OEM) company or its Group company(ies)New Non-Automotive investor (Component) company or its Group company(ies)Upto or before March 31, 2023 3001504030080Upto or before March 31, 2024800400100800200Upto or before March 31, 202514007001751400350Upto or before March 31, 202617508752201750440Upto or before March 31, 2027200010002502000500Note 01: An applicant company or its Group company(ies) must meet the entire eligibility criteria to qualify under the scheme. Note 02: Non-Automotive companies or their Group company(ies) can qualify for this scheme if they present a clear business plan to invest in India and generate revenue from manufacturing Advanced Automotive Technology vehicles or components. Note 03: The applicant's new Non-Automotive Investor company or its Group company(ies) can claim incentive subject to meeting the cumulative minimum new domestic investment required for that particular year, along with the % Year-on-Year growth criteria measured from the minimum threshold fixed in the first year. Note 04: An applicant new Non-Automotive Investor company or its Group company(ies) must satisfy the entire eligibility criteria. Note 05: New investments must come from the same legal entity applying for the incentive. Note 06: The approved Company must meet the cumulative investment condition each year. Note 07: Where an approved company meets the investment condition a few years ahead of the scheme's end, it remains eligible for incentives throughout the scheme's tenure, subject to meeting other conditions. Note 08: Where the approved company fails to meet the cumulative domestic investment condition for a given year, it receives no incentive for that year even if the Determined sales value threshold is met — though it remains eligible for benefits in following years if it meets that year's cumulative domestic investment condition. Note 09: Preference goes to eligible companies or their Group company(ies) committing to front-load investment during the scheme period; the proposed investment commitment gets evaluated by calculating its Net Present Value (NPV), using the bank rate as the discounting factor.
Benefits Provided
Production Linked Incentive Scheme For Automobile And Auto Component Industry provides the following benefits to eligible applicants:
Subject to meeting the scheme's other conditions, approved…
Subject to meeting the scheme's other conditions, approved applicants receive incentives (as a % benefit): 1. Incentive Slabs for Champion OEM and New Non-Automotive (OEM) Investor company: Determined Sales Value (in ₹ Crore)Incentives (%age of Determined Sales Value) 2,000 to 3,00014%> 3,000 to 4,00015%> 4,000 16%Cumulative Determined Sales Value of ₹10,000 Crore over 5 years Additional 2%2. Incentive slab for Component Champion and New Non-Automotive (Component) Investor Company: Determined Sales Value (in ₹ Crore)Incentives (%age of Determined Sales Value) 250 to 500 9%*> 500 to 75010%*> 75011%*Cumulative Determined Sales Value of ₹1,250 Crore over 5 years.Additional 2%Battery Electric vehicles & Hydrogen fuel cell vehicles componentsAdditional 5%*In the fifth year, eligible sales tied to Internal Combustion Engine (ICE) vehicle components are multiplied by a factor of 0.9.
Documents Required
Applicants should keep the following documents ready before starting the application:
A Certificate of Incorporation, issued by the ROC
A Certificate of Incorporation, issued by the ROC.
The Memorandum & Articles of Association, as submitted…
The Memorandum & Articles of Association, as submitted to the ROC.
A copy of the PAN Card
A copy of the PAN Card.
The Import Export Code (IEC) Registration Certificate
The Import Export Code (IEC) Registration Certificate.
A Letter of Authorization from the Board of…
A Letter of Authorization from the Board of Directors, Managing Director, or equivalent (including subsidiary(ies)).
A Certificate on Credit History from the Company…
A Certificate on Credit History from the Company Secretary of the Applicant or the Managing Director (including subsidiary(ies)).
The Company's CIBIL Report (including subsidiary(ies))
The Company's CIBIL Report (including subsidiary(ies)).
A Business Profile/Corporate Presentation of the Applicant (including…
A Business Profile/Corporate Presentation of the Applicant (including subsidiary(ies)).
The GST Registration Certificate (including subsidiary(ies))
The GST Registration Certificate (including subsidiary(ies)).
The Shareholding Pattern, latest as filed with the…
The Shareholding Pattern, latest as filed with the ROC and certified by the Company Secretary, or by the Managing Director where there is no Company Secretary (including subsidiary(ies)).
Profiles of the Directors
Profiles of the Directors.
The Annual Report of the Holding Company
The Annual Report of the Holding Company.
A Self-Certification on Revenue/Investment/Net worth from each Group…
A Self-Certification on Revenue/Investment/Net worth from each Group Company whose credentials were considered.
Financial Details relating to the Subsidiary(ies)
Financial Details relating to the Subsidiary(ies).
A Project Report/Business Plan (including for the Subsidiary(ies))
A Project Report/Business Plan (including for the Subsidiary(ies)).
Proof of payment of the Application Fee
Proof of payment of the Application Fee.
How to Apply
Online Application
Applicants can apply for Production Linked Incentive Scheme For Automobile And Auto Component Industry through the online application process outlined below.
The Notice Inviting Applications keeps the application window open for a period of 60 days.
Application Portal: Open Application Portal ↗
Applicant companies must submit an application along with…
Applicant companies must submit an application along with financial & supporting documents.
All applications get submitted through an online portal…
All applications get submitted through an online portal maintained by the PMA. https://pliauto.in/
Applicants need to "Sign in" using their login…
Applicants need to "Sign in" using their login credentials and apply for the scheme. https://pliauto.in/login
The Application Form, along with details of all…
The Application Form, along with details of all necessary supporting documents, must be submitted at the time of application.
Each application carries a non-refundable application fee
Each application carries a non-refundable application fee.
Once an application is submitted successfully, PMA issues…
Once an application is submitted successfully, PMA issues the applicant a unique Application ID for all future references pertaining to the Scheme. Note 01: PMA processes applications and makes appropriate recommendations for approvals under the Scheme. Note 02: MHI considers applications, as recommended by PMA through the appropriate channel, for approval under the Scheme. Note 03: All applications get finalized within 60 days from the date of submission, or from receipt of any clarification sought. Note 04: After receiving approval, PMA arranges to issue a letter to the selected applicant within 5 working days, communicating approval under the Scheme. Note 05: If a selected applicant is found to be ineligible at any stage, or has not complied with notifications, orders, guidelines etc. of the Scheme, its envisaged incentive claim shall be forfeited, or recovered with interest if already paid.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.