Budget 2026: Auto PLI Outlay Doubled to Rs 5,940 Crore Despite Underutilisation
Frequently Asked Questions
The Union Budget 2026-27 has allocated Rs 5,940 crore for the Auto PLI scheme, which is nearly double the previous year's budget estimate of Rs 2,974.61 crore.
The underutilisation in FY26 was primarily due to OEMs failing to meet the 50 percent Domestic Value Addition (DVA) requirement and missing their projected sales targets.
Currently, OEM applicants must have a group global turnover of at least Rs 10,000 crore and must have invested Rs 3,000 crore in fixed assets to qualify for the scheme.
The allocation for the Advanced Chemistry Cell (ACC) battery PLI scheme was cut by 44.5 percent to Rs 86 crore for FY27 due to slow implementation and commissioning of capacity.
Startups like Ather Energy and River are seeking a dedicated innovation-linked sub-window with relaxed turnover and investment criteria to allow smaller high-tech firms to participate.
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