Govt extends PLI scheme for automobile, auto components for 1 year
Under the amended scheme, the incentive will be applicable for a total of five consecutive financial years, starting from the financial year 2023-24.
In a bid to push the domestic electronics industry, Finance minister Nirmala Sitharaman, on Monday, announced that the tenure of the Production-Linked Incentive (PLI) scheme for large scale electronics manufacturing has been extended by one year till FY 2025-26.
This scheme was to begin in 2020-21 and continue for a period of five years. The finance minister said that this scheme will now continue till 2025-26.
The participating companies will get the option of choosing any five years for meeting their production targets under the scheme. Further, investments made in 2020-21 will continue to be covered.
Advertisement
The scheme provides an incentive of 6 per cent to 4 per cent on incremental sales of goods under target segments manufactured in India for a period of five years.
The extension would support manufacturers as companies have been unable to achieve incremental sales condition due to disruption in production activities due to pandemic related lockdowns, restrictions on movement of personnel, delay in installation of relocated plant and machinery and disruption in supply chain of components.
Advertisement
