PLI Auto Scheme Creates Jobs, Rs 29.6B Spent So Far
ECONOMY & POLICY

PLI Auto Scheme Creates Jobs, Rs 29.6B Spent So Far

The central government has spent Rs 29.6 billion (approx. USD 355 million) under the Production Linked Incentive (PLI) scheme for the automotive sector as of March 2025, generating over 44,987 job opportunities across the auto value chain, according to the Ministry of Heavy Industries (MHI).
This spending accounts for 70 per cent of the Rs 42.5 billion (approx. USD 510 million) total investment outlay projected for the five-year scheme. Of this, Rs 322 million in incentives has been disbursed till 31 March, against a projection of Rs 336 million. The budget estimate for FY26 was sharply cut from Rs 3.15 billion to Rs 336 million.
Approved beneficiaries of the scheme include Tata Motors, Mahindra & Mahindra, Ola Electric, Toyota Kirloskar Motor, Bajaj Auto, TVS Motor Company, Bosch Automotive Electronics India, Delphi-TVS Technologies, Sona BLW Precision Forgings, and Uno Minda.
H.D. Kumaraswamy, Minister for Heavy Industries and Steel, who chaired the review, affirmed the government’s commitment to conducting industry workshops, accelerating claim disbursals, and supporting stakeholders to build a globally competitive and self-reliant automotive sector.
The scheme, launched in September 2021 with a budget outlay of Rs 25.9 billion over five years (FY22–23 to FY26–27), promotes domestic manufacturing of advanced automotive technology (AAT) products and deep localisation.
It particularly focuses on zero-emission vehicles (ZEVs) such as battery electric vehicles (BEVs) and hydrogen fuel cell vehicles. The incentives apply from FY22–23 to FY26–27, with disbursals occurring from FY23–24 to FY27–28.
The scheme is split into two tracks: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme, targeting a broad base of players in India’s automotive manufacturing ecosystem.

The central government has spent Rs 29.6 billion (approx. USD 355 million) under the Production Linked Incentive (PLI) scheme for the automotive sector as of March 2025, generating over 44,987 job opportunities across the auto value chain, according to the Ministry of Heavy Industries (MHI).This spending accounts for 70 per cent of the Rs 42.5 billion (approx. USD 510 million) total investment outlay projected for the five-year scheme. Of this, Rs 322 million in incentives has been disbursed till 31 March, against a projection of Rs 336 million. The budget estimate for FY26 was sharply cut from Rs 3.15 billion to Rs 336 million.Approved beneficiaries of the scheme include Tata Motors, Mahindra & Mahindra, Ola Electric, Toyota Kirloskar Motor, Bajaj Auto, TVS Motor Company, Bosch Automotive Electronics India, Delphi-TVS Technologies, Sona BLW Precision Forgings, and Uno Minda.H.D. Kumaraswamy, Minister for Heavy Industries and Steel, who chaired the review, affirmed the government’s commitment to conducting industry workshops, accelerating claim disbursals, and supporting stakeholders to build a globally competitive and self-reliant automotive sector.The scheme, launched in September 2021 with a budget outlay of Rs 25.9 billion over five years (FY22–23 to FY26–27), promotes domestic manufacturing of advanced automotive technology (AAT) products and deep localisation.It particularly focuses on zero-emission vehicles (ZEVs) such as battery electric vehicles (BEVs) and hydrogen fuel cell vehicles. The incentives apply from FY22–23 to FY26–27, with disbursals occurring from FY23–24 to FY27–28.The scheme is split into two tracks: the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme, targeting a broad base of players in India’s automotive manufacturing ecosystem.

Next Story
Infrastructure Urban

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Next Story
Real Estate

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Next Story
Infrastructure Transport

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?