The government is likely to announce special Production-Linked Incentive (PLI) benefits for sourcing for the auto sector which will be called the 'Sourcing Incentive Scheme', sources informed CNBC-TV18.
The scheme will be part of 4 sub-schemes under the umbrella PLI scheme for the auto sector. Global and Indian OEMs should set up a subsidiary in India exclusively for sourcing, sources said.
Incentives will be applied to an increase in purchase value. The applicants need to meet the cumulative increase in eligible purchase value for each year
YoY and growth criterion of a minimum 8 percent has to be achieved. If the company fails to meet the cumulative growth threshold, it won’t get an incentive for that year, the sources added.
The total eligible purchase value should have at least 50 percent domestic value addition in each step of the supply chain or the total eligible purchase value should have at least 75 percent domestic value in the end-to-end supply chain. For battery electric vehicles, the domestic value addition should be at least 50 percent of the total purchase value, they mentioned.