Home India Ministry of Heavy Industries Amendment in the Guidelines Dated 23.09.2021 for the Product...
Date: 2023-12-29 Category: Not Applicable State: Union Government Country: India

Amendment in the Guidelines Dated 23.09.2021 for the Production Linked Incentive (Pli) Scheme for Automobile and Auto Component Industry(Size: 744.24 KB )

Issued by Ministry of Heavy Industries · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

Executive Summary: This notification, S.O. 5487(E), issued by the Ministry of Heavy Industries on December 29, 2023, amends the Production Linked Incentive (PLI) Scheme Guidelines for the Automobile and Auto Component industry. The amendments concern the tenure of the scheme and conditions regarding the Determined Sales Value thresholds that companies must meet to receive incentives. These changes are effective from the date of publication in the Official Gazette. Key Points / Main Content: * **Scheme Tenure:** * Incentives will be applicable starting from Financial Year 2023-24 and disbursed in the following Financial Year 2024-25, for a total of five consecutive Financial Years. * **Determined Sales Value Thresholds (Subparagraph 10.3.1.V Amendment):** * If an approved company fails to meet the threshold for the increase in Determined Sales Value (125 crore for the first year), it will not receive any incentive for that year. * The company remains eligible for benefits in subsequent years if it meets the threshold calculated on a 10% YoY growth basis from the first year's threshold, for four consecutive years from FY 2023-24. * **Determined Sales Value Thresholds (Subparagraph 10.3.2.V Amendment):** * If an approved company fails to meet the threshold for the increase in Determined Sales Value (25 crore for the first year), it will not receive any incentive for that year. * The company remains eligible for benefits in subsequent years if it meets the threshold calculated on a 10% YoY growth basis from the first year's threshold, for four consecutive years from FY 2023-24. * These provisions aim to provide a level playing field and safeguard applicants who front-loaded investments against market adversities. Impact Analysis: Approved Companies (Automotive and New Non-Automotive Investors): * *Impact:* Companies are subject to revised conditions regarding eligibility for incentives based on Determined Sales Value thresholds. Failure to meet thresholds in a given year results in loss of incentive for that year, but eligibility is retained for subsequent years if targets are met. * *Action Required:* Companies must assess their ability to meet the revised sales value thresholds, plan for consistent year-over-year growth, and understand the implications of failing to meet targets in any given year. Ministry of Heavy Industries: * *Impact:* Responsible for implementing and overseeing the amended PLI scheme. * *Action Required:* Ensure the amended guidelines are effectively communicated to relevant stakeholders and monitor compliance.

Key Entities Referenced

Ministry of Heavy Industries: The government ministry responsible for the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component industry. Production Linked Incentive PLI Scheme for Automobile and Auto Component industry: A government scheme designed to incentivize the production of automobiles and auto components. New Delhi: The location where the notification was issued. Financial Year 2023 24: The starting financial year for the incentive under the scheme. Financial Year 2024 25: The financial year in which the incentive will be disbursed. The Gazette of India: The official government gazette in which the notification is published. HANIF QURESHI: The Joint Secretary who signed the notification. Mayapuri, New Delhi: Location of the Government of India Press.
Official Source Record View Original Source →
See Full Document Text
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-29122023-250974 CG-DxLx-xEG-I2D9H1x2x2x0 23-250974 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY सं. 5254] नई दिल्ली, िुक्रवार, दिसम्ब र 29, 2023/पौर् 8, 1945 No. 5254] NEW DELHI, FRIDAY, DECEMBER 29, 2023/PAUSHA 8, 1945 भारी उद्योग मत्रं ालय अजधसचू ना (सिं ोधन) नई दिल्ली, 29 दिसम् बर, 2023 का.आ. 5487(अ).—भारी उद्योग मंत्रालय द्वारा दिनांक 23 जसतंबर, 2021 के का.आ. 3946(अ) के माध्यम से अजधसजू चत ऑटोमोजबल और ऑटो संघटक उद्योग के जलए उत्पािन-संबद्ध प्रोत्साहन (पीएलआई) दििाजनिेिों के आंजिक आिोधन में, जनम्नजलजखत संिोधन सरकारी रािपत्र में इसके प्रकािन की तारीख से प्रभावी दकए िा रह ेहैं:- पैराग्राफ '3' का संिोधन जनम्नानुसार पढा िाएगा: स्ट्कीम की अवजध: इस स्ट्कीम के अंतगगत अनुप्रयोज्य आर्थगक प्रोत्साहन अनुप्रयोज्य होगा,जिसकी िुरुआत जवत्त वर्ग 2023-24 से होगी जिसे अगले जवत्त वर्ग अथागत 2024-25 से कुल पांच (05) लगातार जवत्त वर्ों के जलए संजवतररत दकया िाएगा। उप-पैराग्राफ '10.3.1.V' का संिोधन जनम्नानुसार पढा िाएगा: यदि अनुमोदित कंपनी, दकसी दिए गए वर्ग के जलए, प्रथम वर्ग की अवसीमा अथागत ₹125 करोड़ रुपये की तुलना में जवजनजित जबक्री मूल्य में वृजद्ध की अवसीमा को प्राप्त करने में जवफल रहती है, तो उसे उस वर्ग के जलए कोई आर्थगक प्रोत्साहन नहीं जमलेगा। दकन्तु, वह अगले वर्ग में स्ट्कीम के अंतगगत लाभ प्राप्त करने के जलए तब भी पात्र होगी, बिते वह उस वर्ग जविेर् के जलए और तिपुरांत लगातार 4 वर्ों तक --िब स्ट्कीम के अंतगगत आर्थगक प्रोत्साहन अनुप्रयोज्य (जवत्त वर् ग2023-24) होगा--अवसीमा को प्राप्त कर ले जिसकी गणना प्रथम वर्ग के जलए जनधागररत अवसीमा की तुलना में वर्ग-िर-वर्ग 10% वृजद्ध के आधार पर की िाएगी। इस प्रावधान से सभी अनुमोदित कंपजनयों अथागत मौिूिा ऑटोमोरटव और नई गैर-ऑटोमोरटव जनवेिक कंपजनयों को समान अवसर उपलब्ध होगा और साथ ही उन अनुमोदित आवेिकों को सुरक्षा कवच उपलब्ध होगा जिन्होंने स्ट्कीम के बाि के वर्ों में बािार मांग की प्रजतकूल पररजस्ट्थजतयों के बाविूि अपने जनवेि को फ्रंट लोड करना पसंि दकया। 8003 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] उप-पैराग्राफ '10.3.2.V' का संिोधन जनम्नानुसार पढा िाएगा : यदि अनुमोदित कंपनी, दकसी दिए गए वर्ग के जलए, प्रथम वर्ग की अवसीमा अथागत ₹25 करोड़ रुपये की तुलना में जवजनजित जबक्री मूल्य में वृजद्ध की अवसीमा को प्राप्त करने में जवफल रहती है, तो उसे उस वर्ग के जलए कोई आर्थगक प्रोत्साहन नहीं जमलेगा। दकन्तु, वह अगले वर्ग में स्ट्कीम के अंतगगत लाभ प्राप्त करने के जलए तब भी पात्र होगी, बिते वह उस वर्ग जविेर् के जलए और तिपुरांत लगातार 4 वर्ों तक --िब स्ट्कीम के अंतगगत आर्थगक प्रोत्साहन अनुप्रयोज्य (जवत्त वर्ग 2023-24) होगा-- अवसीमा को प्राप्त कर ले जिसकी गणना प्रथम वर्ग के जलए जनधागररत अवसीमा की तुलना में वर्ग-िर-वर्ग 10% वृजद्ध के आधार पर की िाएगी। इस प्रावधान से सभी अनुमोदित कंपजनयों अथागत मौिूिा ऑटोमोरटव और नई गैर-ऑटोमोरटव जनवेिक कंपजनयों को समान अवसर उपलब्ध होगा और साथ ही उन अनुमोदित आवेिकों को सुरक्षा कवच उपलब्ध होगा जिन्होंने स्ट्कीम के बाि के वर्ों में बािार मांग की प्रजतकूल पररजस्ट्थजतयों के बाविूि अपने जनवेि को फ्रंट लोड करना पसंि दकया। [फा. सं. 12(11)/2020-AEI (21370)] हनीफ़ कुरैिी, संयुक्त सजचव MINISTRY OF HEAVY INDUSTRIES NOTIFICATION (AMENDMENT) New Delhi, the 29th December, 2023 S.O. 5487(E).—In partial modification of the Scheme Guidelines for the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component industry which was notified by the Ministry of Heavy Industries vide S.O. No. 3947 (E) dated 23rd September 2021, the following amendments are made with effect from date of its publication in the Official Gazette:- Amendment of paragraph ‘3’ to be read as under: Tenure of the Scheme: Incentive under the scheme will be applicable, starting from the Financial Year 2023- 24 which will be disbursed in the following Financial Year i.e. 2024-25 and so on for a total of five (05) consecutive Financial Years. Amendment of sub-paragraph ‘10.3.1.V’ to be read as under: In case the approved company fails to meet the threshold for increase in Determined Sales Value over the threshold for the first year i.e. ₹125 crore, for any given year, it will not receive any incentive for that year. However, it will still be eligible to receive the benefits under the scheme in the next year if it meets the threshold for that particular year calculated on the basis of 10% YoY growth over the threshold for the first year and thereafter for 4 consecutive years from when the incentive under the scheme becomes applicable (FY 2023-24). This provision will provide level playing field to all approved companies viz. existing Automotive and New Non-Automotive Investor companies as well as safeguard the approved applicants who preferred to front load their investment, against adversities of the market demand conditions in subsequent years of the scheme. Amendment of sub-paragraph ‘10.3.2.V’ to be read as under: In case the approved company fails to meet the threshold for increase in Determined Sales Value over the threshold for the first year i.e. ₹ 25 crore, for any given year, it will not receive any incentive for that year. However, it will still be eligible to receive the benefits under the scheme in the next year if it meets the threshold for that particular year calculated on the basis of 10% YoY growth over the threshold for the first year and thereafter for 4 consecutive years from when the incentive under the scheme becomes applicable (FY 2023-24). This provision will provide level playing field to all approved companies viz. existing Automotive and New Non-Automotive Investor companies as well as safeguard the approved applicants who preferred to front load their investment, against adversities of the market demand conditions in subsequent years of the scheme. [F. No. 12(11)/2020-AEI (21370)] HANIF QURESHI, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

Continue your research