Auto PLI Scheme: Ministry Seeks ₹5,800 Crore Allocation
Why in the news
The Ministry of Heavy Industries (MHI) wants the money for the production-linked incentive scheme for autos and auto components roughly doubled in the next financial year.
| Period | Allocation |
|---|---|
| Proposed for next FY | ₹5,800 crore |
| FY 2025-26 | ₹2,818.85 crore |
About the Auto PLI scheme
- Started in 2021 with an overall outlay of ₹25,938 crore.
- Goals: strengthen domestic manufacturing, draw investment and encourage green mobility.
Key features
- Incentives depend on incremental production.
- Mandatory Domestic Value Addition (DVA) of 50%.
- Priority on Zero Emission Vehicles (ZEVs), covering Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
Exam angle
- Nodal ministry: Ministry of Heavy Industries.
- Launched in: 2021; total outlay ₹25,938 crore.
- Minimum DVA condition: 50%.