Auto OEMS sceptical about PLI payouts

Companies applying for the automotive and auto components production-linked incentive (PLI) scheme fear they may not be able to meet all of the government's requirements to receive the incentives this fiscal, multiple industry sources said, citing lengthy, "onerous" and complex procedures

- Alisha Sachdev

Their scepticism comes even as the ministry of heavy industries (MHI) is keen to start disbursing incentives under the ₹45,000 crore scheme on a quarterly basis.

So far, only two applicants to the OEM (original equipment manufacturer) PLI scheme Mahindra & Mahindra and Tata Motors have been able to submit domestic value addition (DVA) documents.

M&M is already approved for DVA and Tata Motors is likely to receive DVA certification in a week.

There is lack of clarity on the procedures to claim incentives, with the industry holding discussions with the government on the matter.

Meanwhile, industry body PHD Chamber of Commerce has sent a representation to the MHI, seeking an extension of the timelines that qualifying applicants have been given to submit their DVA certification.