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Auto PLI Takes the Slow Track for a Second Year
Hindustan Times
|February 28, 2025
The disbursals will stay low, despite the large amount set aside
NEW DELHI: Four years since India flagged off an ambitious scheme to encourage the local production of automobiles, the ₹26,000-crore venture is yet to gain traction.
The production-linked incentive (PLI) scheme for automobiles and components (PLI-Auto) was announced in 2021, but the first payouts happened only in January this year. For FY26, the government expects incentives to make up only 12% of the overall ₹2,818.85 crore allotted to the scheme, showed data from the Centre's Outcome Budget, which sets targets for outcomes of various schemes. That would make it the second year the scheme's disbursals will be only a small share of the funds allocated.
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