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Union Budget: The primary goal of the production-linked incentive (PLI) scheme is to generate jobs, which India sorely needs. The government has stated that the PLI scheme could be extended to more sectors, and what would be a more opportune moment than the budget speech to announce that? The Centre made its intention clear at the very start of the New Year, as it extended the Production-Linked Incentive (PLI) Scheme for Automobile and Auto Components by a year by making a few amendments.

US EV Policy: According to S&P Global Commodity Insights, despite encouraging the inclusion of U.S.-sourced battery metals such as lithium, cobalt, and nickel in tax credit-eligible EVs, low domestic production levels are expected to keep the U.S. reliant on foreign producers.

Responding to a query on the decision to put the toy PLI proposal on hold, DPIIT secretary Rajesh Kumar Singh said, “Currently we are focused on getting these 14 PLI schemes up and running in a good way. For the time being, the new PLI schemes are not being considered and we will focus on ensuring that these existing schemes get implemented well. Thereafter well see.”

The Ministry of Heavy Industries has extended the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year with partial amendments. The scheme will be applicable for five consecutive financial years, starting from FY24 and ending in 2027-28. The government has also modified the incentive outlay table to Rs. 25,938 crore.

The incentives as part of the scheme will now be available from FY24 to FY28, an official release noted.