Centre mulls cut in PLI auto sops to ₹2,000 cr for FY26

Scheme has faced challenges including localization requirements and delays in disbursal

- Manas Pimpalkhare

The initial allocation for the scheme, launched in 2021 to incentivize companies making zero-emission vehicles or their components, was about ₹2,800 crore.

(REUTERS)

The ministry of heavy industries (MHI) plans to revise the budgetary allocation for the ₹25,938-crore PLI-Auto scheme for FY26 to ₹2,000 crore, as it has received claims for manufacturers for roughly that amount this year, according to two people aware of the development.

The initial allocation for the scheme was a little over ₹2,800 crore for FY26. MHI is in the process of budgetary consultations with the finance ministry.

The scheme was launched in 2021 to provide manufacturing incentives for companies making zero-emission vehicles or their components, marking one of the biggest policy drivers for India’s emerging electric vehicle (EV) ecosystem. This includes zero-emission models of all vehicle segments.