Govt disburses 9% of projected incentive for auto PLI scheme as of Dec-end
This story was originally published at 17:26 IST on 31 December 2025
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--Govt: Disbursed INR-20-bln under auto PLI for 5 cos as of date for FY25
NEW DELHI – The Ministry of Heavy Industries has disbursed INR 23.22 billion as of Wednesday, around 9% of the projected incentive of INR 259.38 billion to be paid out over five years as part of the production-linked incentive scheme for automobile manufacturing, according to an official release. The overall figure includes INR 20 billion disbursed to six approved applicants--Tata Motors Ltd., Bajaj Auto Ltd., Mahindra & Mahindra Ltd., TVS Motor Co. Ltd., Ola Electric Technologies Pvt. Ltd., and Toyota Kirloskar Auto Parts Pvt. Ltd.--for 2024-25 (Apr-Mar).
This is only the second performance year for the five-year scheme aimed at boosting the manufacturing of advanced automotive technology. The ministry had disbursed INR 3.22 billion to four applicants in FY24, including Tata Motors, M&M, Ola Electric Tech, and Toyota Kirloskar Auto Parts collectively, for the scheme, which runs till FY28. The ministry has set an incentive budget of INR 20.91 billion for FY26, INR 59.40 billion for FY27, INR 85.19 billion for FY28, and INR 90.60 billion for FY29.
Automobile companies had invested INR 356.57 billion under the scheme as of September, compared to the government's projected investment of INR 425 billion over five years. Cumulative incremental sales until September stood at INR 328.79 billion, compared with the government's projection of INR 2.31 trillion over five years. The government had projected employment generation to the tune of 148,147 over five years, and as of September, this stood at 48,974 jobs.
The government has provided incentives for 1.04 million electric two-wheelers under the PLI scheme so far, in addition to 238,385 electric three-wheelers, 79,540 electric four-wheelers, and 1,391 electric buses.
As of date, eight applicants under the "Champion OEM" category have received certification for achieving domestic value addition of at least 50%. This includes M&M, Tata Motors, Bajaj Auto, TVS Motor, Ola Electric Tech, Eicher Motors Ltd., Pinnacle Mobility Solutions Pvt. Ltd., and Hero MotoCorp. Ltd.
Additionally, 10 applicants have received the domestic value addition certification under the "component champion" category. This includes Toyota Kirloskar Auto Parts, Delphi-TVS Technologiees, Sona BLW Precision Forgings Ltd., Bosch Automotive Electronics India Pvt. Ltd., Dana TM4 India Pvt. Ltd., Tata Autocomp Systems Ltd., UNO Minda Ltd., Varroc Engineering Pvt. Ltd., Napino Auto and Electronics Ltd., and Cummins Technologies India Pvt. Ltd. End
Reported by Anand JC
Edited by Akul Nishant Akhoury
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