After the recent extension, what is the new duration of the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components sector?

Correct option is C

The new duration of the PLI Scheme for the Automobile and Auto Components sector is 2023-2028.
· Extension:
· The Ministry of Heavy Industries extended the PLI Scheme by one year after approval from the Empowered Group of Secretaries (EGoS).
· This extension aims to provide flexibility and clarity to the scheme.
· Incentive Duration:
· The incentive will now be applicable for five consecutive financial years starting from FY 2023-24.
· Disbursement of incentives will begin in the financial year 2024-25.
· The scheme will run until March 31, 2028, ensuring that approved applicants can claim benefits only within this period.
· Eligibility Criteria:
· Approved applicants can receive benefits for five consecutive financial years, with incentives provided for a 10% year-on-year increase in Determined Sales Value over the first year’s threshold.
· If the threshold is not met in a particular year, the applicant will not receive the incentive but can still qualify in the next year upon meeting the target.
· Total Incentive Outlay:
· The amended scheme sets a total indicative incentive amounting to Rs. 25,938 crore.
· Objective:
· The scheme aims to boost investments, promote domestic manufacturing, and enhance the competitiveness of the automobile and auto components sector in India.