PLI-auto scheme attracts Rs 44,326 crore investment, generates nearly 68,000 jobs: Govt
New Delhi, Aug 4
The Production Linked Incentive scheme for automobiles and auto components has attracted investments worth Rs 44,326 crore and generated 67,820 jobs till March 31, 2026, the Ministry of Heavy Industries said on Tuesday.
According to the ministry, the scheme has also resulted in incremental sales of Rs 52,414 crore over the FY20 base year and incentives worth Rs 2,386.36 crore have been disbursed to eligible beneficiaries so far.
Implemented on an all-India basis, the PLI-Auto scheme aims to promote domestic manufacturing of advanced automotive technologies and strengthen India's position in the global auto value chain.
The ministry said the scheme mandates a minimum Domestic Value Addition (DVA) of 50 per cent for companies seeking incentives, with the objective of boosting localisation and domestic production.
As of July 28, 2026, a total of 18 applicants had received DVA certificates covering 155 Advanced Automotive Technology (AAT) products and variants.
On flex-fuel vehicles, the ministry clarified that it has not formulated any separate phased national policy to incentivise vehicles operating on fuel blended with more than 20 per cent ethanol.
The ministry further stated that it has not conducted any study on incentivisation of flex-fuel vehicles or electric vehicles.
At the same time, the government reiterated its commitment to promoting ethanol blending through a balanced approach that takes into account water sustainability, food security and farmers' interests.
Under the National Policy on Biofuels, ethanol production is permitted from a variety of approved feedstocks, including sugarcane-based raw materials, maize, damaged foodgrains, broken rice, foodgrains unfit for human consumption and surplus foodgrains approved by the National Biofuel Coordination Committee (NBCC).
The government is also encouraging crop diversification towards relatively less water-intensive feedstocks such as maize.
An expert committee constituted by the Ministry of Agriculture and Farmers Welfare in 2024 examined the water requirements of various ethanol feedstock crops, and its recommendations are being considered during programme implementation.
— IANS
Reader Comments
Finally some concrete numbers! The 50% DVA mandate is a game-changer for local auto component manufacturers. Small vendors like my uncle's shop in Pune are already feeling the ripple effect. Hope the government continues this momentum and simplifies compliance for MSMEs.
The ethanol part concerns me. They talk about crop diversification to maize, but ground reality in UP and Punjab is very different. Farmers need clear incentives before they shift from traditional crops. Also, water sustainability should be the top priority, not just blending targets. 🤔
Impressive numbers from India's PLI scheme. The 68,000 jobs created shows how manufacturing can drive economic growth. As someone who works in the global auto sector, I can see India becoming a serious player in EV and advanced auto tech. Keep it up!
While the investment numbers are encouraging, I'm skeptical about the job quality. Are these 68,000 jobs mostly contract-based or permanent? The auto sector has a history of exploiting contract workers. Also, why no separate policy for flex-fuel vehicles when Brazil has shown it works? Just asking the tough questions. 🙏
The DVA 50% rule is brilliant - it forces companies to actually manufacture here rather than just assemble imported kits. My friend who works with a Tata Motors supplier says they've doubled their component orders since 2023. This is how you build a self-reliant economy. Jai Hind! 🇮🇳
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