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Govt. may upgrade eligibility criteria for PLI scheme for automakers

The ministry of heavy industries and public enterprises along with the commerce ministry are planning to offer Standard Operating Procedure on the basis of the incremental increase in export revenues from the base year instead of just total revenue from goods shipped in a given year.
In order to include export to neighbouring countries, the ministries might reduce “long-distance” sales to 2,500 km from 3,000 km. At present, Maruti Suzuki India Ltd, Hyundai Motor India, and Ford Motor India are the top three passenger vehicle exporters in the country. On the other hand, Bajaj Auto Ltd and TVS Motor are the leading exporters of two-wheelers.
Last year, in November, the Centre announced the PLI scheme to incentivise firms in 10 sectors to drive local manufacturing and improve exports. The automotive sector, which comprises vehicle makers and parts suppliers, will receive subsidies worth Rs 57,000 crore–the biggest chunk–as part of the scheme.
For new non-automotive entities, the PLI will be offered to companies that have a global net worth of Rs 1,000 crore and have committed at least Rs 2,000 crore investment in India over a 5-year horizon. This investment will have to show a plan for the growth of revenue from automotive and auto component manufacturing.

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