Parliament Question: Reduction in budgetary allocation for PLI-Auto Scheme

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES RAJYA SABHA UNSTARRED QUESTION NO. 1686 ANSWERED ON 13.02.2026 REDUCTION IN BUDGETARY ALLOCATION FOR PLI-AUTO SCHEME 1686. DR. K. LAXMAN: Will the Minister of Heavy Industries be pleased to state: (a) whether it is a fact that the budget allocation for the PLI-Auto scheme was trimmed to ₹2,000 crore for financial year 2025-26; (b) if so, the reasons for this reduction; (c) the manner in which this cut may affect Electric Vehicle (EV) manufacturers and component suppliers who previously committed to expansion; and (d) the steps taken to safeguard the scheme’s original goals of green manufacturing and employment generation? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA) (a) to (c): Budget allocation for the PLI-Auto scheme is reduced to ₹2,091.26 crore at Revised Estimate (RE) stage from Budget Estimate (BE) of ₹2818.85 crore for FY 2025-26 due to revised projections of incentive claims by the approved applicants. The incentive claims received in FY 2025-26 are for actual sales of Domestic Value Addition (DVA) certified Advance Automotive Products (AAT) in FY 2024-25 and have no implication on investment. (d): To safeguard the scheme's objectives, Ministry of Heavy Industries conducts review meetings with approved applicants and handhold them for incentive claim submission. Regular workshops are also conducted to encourage investment and employment generation under the scheme. *******