Question: Tell me about the Production Linked Incentive Scheme For Automobile And Auto Component Industry scheme.

Answer: s include overcoming cost

**Eligibility:** criteria.Note 05: New investments should be made from the same legal entity as the one applying for the incentive.Note 06:
The approved Company is required to meet the cumulative investment condition for each year.Note 07: In the event, any approved
company meets the investment condition a few years before the end of the scheme; it will be eligible for incentives throughout the tenure
of the scheme subject to meeting other conditions of the scheme.Note 08: In case the approved company fails to meet the cumulative
domestic investment condition in any given year, it will not receive any incentive for that year even if the threshold for Determined sales
value is achieved. However, it will still be eligible to receive the benefits under the scheme in the following years if it meets the
cumulative domestic investment condition defined for that year.Note 09: Preference will be given to eligible companies or its Group
company(ies) committing to front-load their investment during the scheme period. The proposed investment commitment will be
evaluated by calculating the Net Present Value (NPV) of the investment using the bank rate as the discounting factor.Application
ProcessOnlineThe window for receiving applications through the Notice Inviting Applications will be for a period of 60 days.Step 01:
The applicant companies are required to submit an application along with financial & supporting documents.Step 02: All applications
will be submitted through an online portal maintained by the PMA. https://pliauto.in/ï»¿Step 03: Applicants need to "" using their
login credentials and apply for the scheme. https://pliauto.in/login ï»¿Step 04: The Application Form along with details of all necessary
supporting documents, to be submitted at the time of application.Step 05: A non-refundable application fee would be payable for each
application.Step 06: Upon successful submission of an application, PMA will issue a unique Application ID to the applicant for all future
references pertaining to the Scheme.Note 01: The PMA will process the applications and make appropriate recommendations for
approvals under the Scheme.Note 02: MHI will consider applications, as recommended by PMA through the appropriate channel, for
approval under the Scheme.Note 03: All the applications will be finalized within 60 days from the date of submission of applications or
receipt of clarification sought, if any.Note 04: After receiving approval, the PMA will arrange to issue a letter to the selected applicant
within 5 working days, communicating approval under the Scheme.Note 05: If a selected applicant is found to be ineligible at any stage,
or if it has not complied with notifications, orders, guidelines etc. of the Scheme, the envisaged incentive claim of such selected
applicant shall be forfeited or recovered with interest, if already paid.ï»¿ï»¿ï»¿ï»¿ï»¿ï»¿ï»¿ï»¿ï»¿Documents Required1. Certificate of
Incorporation (Issued by ROC)2. Memorandum & Articles of Association (Submitted to ROC)3. PAN Card4. Import Export Code (IEC)
Registration Certificate5. Letter of Authorization by Board of Directors or Managing Director or Equivalent (incl. subsidiary(ies))6.
Certificate from the Company Secretary of the Applicant / Managing Director for Credit History (incl. subsidiary(ies))7. CIBIL Report of
the Company (incl. subsidiary(ies))8. Business Profile/ Corporate Presentation of the Applicant (incl. subsidiary(ies))9. GST Registration
Certificate (incl. subsidiary(ies))10. Shareholding Pattern (Latest submitted with ROC and certified by the Company Secretary of the
company or in case the applicant is not having any 'Company Secretary' - by the Managing Director) (incl. subsidiary(ies))11. Profile of
Directors12. Annual Report of Holding Company13. Self-Certification on Revenue/ Investment/ Net worth from each of the Group
Company (ies) whose credentials have been considered14. Financial Details of Subsidiary(ies)15. Project Report/ Business Plan (incl. for
Subsidiary(ies))16. Application Fee Payment Proofï»¿ï»¿Frequently Asked QuestionsWho is an applicant under the scheme? An
applicant under the scheme is a i. Company incorporated/ registered in India under the Companies Act, 2013, engaged in the automotive
and/or auto component manufacturing sector or ii. New Non-Automotive Investor company (who is currently not in an automobile or
auto component manufacturing business) incorporated/ registered in India under the Companies Act, 2013 meeting the eligibility criteria
specified under the scheme and making an application for seeking approval under the Scheme. What are the circumstances under which
an applicant may be ineligible for the scheme? The applicants whose accounts are declared as Non-Performing Asset (NPA) as per RBI
guidelines or defaulter or wilful defaulter as per RBI/CIBIL or SEBI debarred list or reported as fraud by any bank, financial institution
or non-banking financial companies etc. would be considered ineligible. Further, there should not be any insolvency proceedings
admitted against the Applicant in the National Company Law Tribunal (NCLT) etc. Can an applicant have multiple manufacturing
facilities? An applicant can have multiple manufacturing facilities/ locations in India. Are Greenfield projects and Brownfield projects
both allowed under the scheme? Yes, Greenfield projects and Brownfield projects both are allowed under the scheme. Whether a
Proprietorship, Partnership and Limited Liability Partnership (LLP) could avail PLI benefits? No, Proprietorship, Partnership, and LLPs
are not allowed under the scheme. Any company incorporated in India and as defined in the Companies Act 2 of 16 2013, proposing to
manufacture one or more eligible product(s) under the scheme, can be an applicant. Can a 100% foreign-owned company be eligible
under PLI Scheme? Yes, but it has to be registered in India to apply under the scheme. Do the Value-Added Resellers and Trading
companies which are not in manufacturing business qualify under the scheme? Yes, any Company registered in India under the
Companies Act can apply under the scheme subject to meeting the eligibility criteria and establishing a manufacturing facility for
production of the eligible products under the scheme. Can two or more companies of the Group apply through a single common
Application? Any number of companies of the Group is permitted to apply under this scheme as an individual applicants by submitting
separate applications. However, they can use the global group revenue, gross block, and net worth of the Group in their separate
applications respectively. How many components are there in this scheme? There are two components in the scheme i. Champion OEM
incentive scheme ii. Component Champion incentive scheme Can a company submit Multiple Applications as Applicant under different
Categories?An applicant eligible for applying under Champion OEM can also apply for the Component Champion segment. However,
an auto component manufacturer as an applicant eligible for applying under the Component Champion segment cannot apply under
Champion OEM. Can an applicant approved under both Champion OEM and Component Champion segment claim incentive for the
same component under both segments? An approved legal entity as an Automotive OEM company or New NonAutomotive Investor
company can avail incentives under both components of the scheme subject to the condition that any eligible product shall be
incentivized only once under the scheme. Any double claim of incentive for the same product under component level and vehicle level
can lead to the qualification of the legal entity involved on this ground alone in addition to any other legal action as applicable under the
law. In case the outlay of incentive exceeds, will the budgetary outlay be enhanced? This is a fund-limited scheme. In case the calculated
incentive pay-out exceeds the budgetary outlay, the scheme could be exhausted earlier than 5 (Five) years period and the incentive pay-
out will be reduced on a pro-rata basis as per the formulation developed across all PLIs.Is there any segregation in the budgetary outlay
based on vehicle segments like 2W, 3W, 4W, CV, Tractors and Vehicles used for military purpose etc.? No. There is only one allocation
in the scheme. Is there any segregation in the budgetary outlay for vehicles and Auto components in the scheme? No. There is only one
allocation in the scheme.What is the period for making an application under the Scheme? The window for receiving applications through
the online portal of the scheme shall be 60 days starting from the date of Notice Inviting Applications. What is the base year for
calculation of eligible sale value?Financial Year 2019-20 shall be treated as the base year for calculating eligible sale value (not
applicable for approved new non-automotive investor companies). Can any applicant company claim incentive for any Automobile or
Auto component manufactured by them? No. The applicant company once selected and approved under the scheme can claim an
incentive on the Determined sales value of eligible Advanced Automotive Technology products prescribed by MHI. Can any approved
company claim scheme incentive for all Advanced Automotive Technology (AAT) products manufactured by them? Any approved
company can claim incentive under the scheme for only those Advanced Automotive Technology products meeting the condition of
minimum 50% domestic value addition. When can an applicant submit a claim for disbursements under PLI? An applicant may submit a
claim for disbursement of incentive within 6 (six) months from the end of the financial year to which the claim pertains or within 3
(three) months from the date of finalization of Audited Financial Statements for the same financial year, whichever is later. Claim for
any financial year period shall be made only once, unless withdrawn, and no subsequent part claims shall be allowed for the said period.