Auto PLI extension: Subsidy qualification woes

24 Aug 2023 CW Team

The Indian government is contemplating a one-year extension for the Rs 2593 billion production-linked incentives (PLI) scheme aimed at promoting local manufacturing of technology products like electric vehicles in the automotive sector. The initial phase of the five-year plan, operational since April 2022, saw no participating companies qualifying for subsidies in its first year. Consequently, the government may extend the scheme's deadline from March 2027 to March 2028.

Around 95 companies are enrolled in the PLI scheme, but none claimed subsidies during the first year ending in March 2023, leading to no government disbursement. The delay was attributed to uncertainties around the procedure to calculate domestic value addition (DVA), a requirement for eligibility certification. Only Mahindra Last Mile Mobility and Tata Motors have received eligibility certificates, and that too for just one model each, leaving several other models pending.

Industry insiders indicated that the lack of certainty around DVA computation and incentives led to postponed investments by successful PLI applicants in the automotive sector. Companies struggled to obtain product certifications and delayed investments due to program uncertainties.

Amid such challenges, industry figures, including Sudhir Mehta, Chairman of Pinnacle Industries, have requested an extension of the scheme by a year to allow the policy to achieve its objectives. The Ministry of Heavy Industries, overseeing the PLI scheme, has not yet commented on the proposed extension.

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..