What are the Rs 1,350.83 crore incentives under the PLI Auto scheme?
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Synopsis
Discover how the PLI Auto scheme is reshaping India's automotive industry with Rs 1,350.83 crore in incentives. This significant financial support aims to boost domestic manufacturing and attract investments, paving the way for a greener future. Dive into the details and understand its impact on the economy.
Key Takeaways
- Incentives of Rs 1,350.83 crore disbursed to five applicants under the PLI Auto scheme.
- Scheme aims for Rs 2,31,500 crore in sales by March 2028.
- Promotes domestic manufacturing of Advanced Automotive Technology products.
- Over 12 lakh jobs created since 2020.
- Supports the Atmanirbhar Bharat initiative.
New Delhi, Dec 9 (NationPress) Under the Production Linked Incentive (PLI) Auto scheme, a total of Rs 1,350.83 crore has been allocated to five applicants as of November 11, as reported to Parliament on Tuesday.
This initiative was introduced with a total budget of Rs 25,938 crore.
The projected sales goal by March 2028 (based on the fiscal year 2019-20) is set at Rs 2,31,500 crore, with a reported sales achievement of Rs 32,879 crore as of September 30, 2025, according to Minister of State for Heavy Industries, Bhupathiraju Srinivasa Varma, during a Rajya Sabha session.
The PLI Auto Scheme aims to provide financial support to enhance domestic production of Advanced Automotive Technology (AAT) products and to draw investments into the automotive manufacturing ecosystem.
With the rise in electric vehicle (EV) adoption, the requirements for Domestic Value Addition (DVA) and the localization of the EV supply chain are being expanded across all AAT products.
This scheme proposes financial incentives to promote the domestic manufacturing of AAT products, requiring a minimum DVA of 50 percent while attracting investments into the automotive sector.
On May 12, 2021, the government endorsed the PLI-ACC plan, aimed at stimulating the production of Advanced Chemistry Cells (ACC) in India, with a budget allocation of Rs 18,100 crore. This initiative aims to establish a cumulative manufacturing capability of 50 GWh for ACC batteries.
The PM E-DRIVE scheme was announced on September 29, 2024, with an investment of Rs 10,900 crore over four years, designed to incentivize the sale of electric two-wheelers (e-2W), electric three-wheelers (e-3W), e-Ambulances, e-Trucks, and e-buses.
This initiative also facilitates the development of charging infrastructure and the enhancement of vehicle testing agencies. Under the PM E-DRIVE Scheme, the Phased Manufacturing Programme (PMP) mandates the domestic production of designated EV components, as stated by the minister.
Since its inception in 2020, the PLI scheme has attracted a total of Rs 1.76 lakh crore in committed investments and has generated over 12 lakh jobs. To date, it has approved 806 applications across 14 strategic sectors, primarily aimed at bolstering manufacturing in alignment with the Atmanirbhar Bharat initiative.
Point of View
I believe the PLI Auto scheme represents a pivotal moment for India's automotive sector. By fostering domestic production and innovation, the government is taking significant steps toward achieving self-reliance in this crucial industry. The positive impact on job creation and investment attraction is a testament to the forward-thinking policies aimed at strengthening our economy.
NationPress
09/12/2025
Frequently Asked Questions
What is the PLI Auto scheme?
The PLI Auto scheme is a government initiative aimed at providing financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive value chain.
How much has been disbursed under the PLI Auto scheme?
As of November 11, a total of Rs 1,350.83 crore has been disbursed to five applicants under the PLI Auto scheme.
What is the sales target for the PLI Auto scheme?
The eligible sales target under the PLI Auto scheme is Rs 2,31,500 crore by March 2028.
How many jobs has the PLI scheme created?
The PLI scheme has created over 12 lakh jobs since its inception in 2020.
What does the PM E-DRIVE scheme aim to achieve?
The PM E-DRIVE scheme aims to incentivize the sale of electric vehicles and support the development of charging infrastructure.
