Automakers that have qualified for the ₹25,938 crore production-linked incentive (PLI) scheme for the sector have flagged problems with the calculation of local value addition. A minimum 50% domestic value addition (DVA) is a key condition for companies to qualify for subsidies under the scheme. The intention is to promote local manufacture of new technology products such as electric vehicles (EV) rather than subsidising imports. This, they say, is a better reflection of local value addition and will aid them in meeting the 50% DVA requirement. This, they say, is a better reflection of local value addition and will aid them in meeting the 50% DVA requirement.

Source: Economic Times August 13, 2023 03:52 UTC