Ministry of Heavy Industries publishes FAQ on PLI Scheme for Automobile and Auto Component Industry.

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The Ministry of Heavy Industries on 8th October 2021 has issued clarifications on the PLI Scheme for Automobile and Auto Component Industry. As per the scheme, the applicant can be a Company incorporated/ registered in India under the Companies Act, 2013, engaged in automotive and/or auto component manufacturing sector or New Non-Automotive Investor Company (who are currently not in automobile or auto component manufacturing business) incorporated/ registered in India under the Companies Act, 2013.

However, Proprietorship, Partnership and LLPs are not allowed under the scheme. Any company incorporated in India and as defined in the Companies Act 2 of 16 2013, proposing to manufacture one or more eligible product(s) under the scheme, can be an applicant.

It is clarified under this scheme, that an applicant can have multiple manufacturing facilities/ locations in India and Greenfield projects and Brownfield projects both are allowed under the scheme.

Further it is clarified that an approved legal entity as Automotive OEM company or New NonAutomotive Investor company can avail incentives under both components of the scheme subject to the condition that any eligible product shall be incentivized only once under the scheme.

There is no year-wise limit in this scheme. The entire scheme is based on the concept of front-loading of investments and tapering off of incentive towards end of the scheme and the Financial Year 2019-20 shall be treated as base year for calculating eligible sale value.

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