Japan lowers growth forecast amid auto export slowdown
The downward revision reflected delays in the recovery of automobile exports, impacted by certification-related issues with certain manufacturers.
The Ministry of Heavy Industries on Monday announced the extension of tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year.
The move came after the approval from Empowered Group of Secretaries (EGoS). Following which, the ministry made partial amendments in the PLI Scheme.
Under the amended scheme, the incentive will be applicable for a total of five consecutive financial years, starting from the financial year 2023-24.
Advertisement
The disbursement of the incentive will take place in the following financial year 2024-25.
However, the approved applicant will be eligible for benefits for five consecutive financial years, but not beyond the financial year ending on March 31, 2028.
The government said that the amendments are expected to provide greater clarity and support to the sector, promoting growth and competitiveness.
Also, it stated that if an approved company fails to meet the threshold for an increase in Determined Sales Value over the first year’s threshold, it will not receive any incentive for that year.
However, it will still be eligible for benefits in the next year if it meets the threshold calculated on the basis of a 10% year-on-year growth over the first year’s threshold, it stated.
This provision aims to ensure a level playing field for all approved companies and safeguard those who preferred to front-load their investments.
The amendment also includes changes to the table indicating the incentive outlay, with the total indicative incentive amounting to Rs 25,938 crore.
Advertisement
