Now, PLI investments: Auto cos seek clarity, extension

Scheme required companies to make new investments every year between FY 23 and FY27

- Nehal Chaliawala

Automakers that are part of the government's ₹25,938-crore production-linked incentive (PLI) scheme for the sector have sought clarity on whether the investment timeline has been extended in line with the one-year extension of the scheme, according to industry executives.

Companies have urged the government to extend the scheme's investment timeline by a year so that it matches the incentive disbursal period.

The five-year PLI scheme for advanced automotive technologies (PLI-AAT) was extended by a year in late December, after none of the participating companies could avail of benefits in the first year of the scheme ending March 2023 (FY23).

The scheme now effectively runs from FY24 to FY28, with incentives to be disbursed after each financial year.

Original scheme documents required companies to invest every year from FY23 to FY27. The minimum investment to be made every year was also outlined in the policy, as per the classification of the applicant company.