Government Money for Auto-Component Suppliers in 2026: PLI, ZED, ADEETIE and 5 States (What a 300-Person Plant Can Use)
Can a 300-person auto-component plant get PLI Auto money? Almost certainly not: as of 20 Oct 2026, the 2021 gazette requires ₹500 crore group revenue and ₹150 crore gross block, and the application window has closed. A mid-size supplier's usable money is state capital or interest subsidy (₹1–2.5 crore on a ₹10 crore line), ZED and ADEETIE.
Last checked: 20 Oct 2026
By the Mama Editorial Team. Every rate links to its source; our arithmetic is marked "assume". Download the table rows as a CSV.
Verified against
- PLI Auto notification S.O. 3946(E), 23 Sep 2021 and tenure amendment S.O. 5486(E), 29 Dec 2023; the latest, S.O. 188(E), 13 Jan 2026, changes only vehicle criteria.
- PLI Auto guidelines and DVA amendment S.O. 3863(E), 6 Sep 2024.
- Approved applicants, 28 Feb 2026; MHI Lok Sabha reply 1445, 9 Dec 2025.
- PM E-DRIVE: PIB, 8 Aug 2025; S.O. 4424(E), 10 Aug 2026; e-truck PMP S.O. 4871(E), 3 Sep 2026.
- BEE ADEETIE page; Ministry of MSME ZED release, 4 Aug 2026.
- States: TN G.O.(Ms) No.37, 6 Jul 2021; Maharashtra IISP 2025; Karnataka Industrial Policy 2025-30; Haryana EV Capital Subsidy, 3 Nov 2022; Gujarat iNDEXTb summary (2024).
- Checked 20 Oct 2026.
The measures side by side
| Measure | Who can claim | What it pays | Runs until | Fits a 300-person supplier? | Source |
|---|---|---|---|---|---|
| PLI Auto: Component Champion | Group revenue ≥ ₹500 cr, gross block ≥ ₹150 cr (FY2020-21) | 8–11% of incremental sales of approved parts, +5% BEV/fuel-cell | Incentive years FY2023-24 to FY2027-28 | No: thresholds, plus window closed | S.O. 3946(E) para 3.2, 3.3.3; S.O. 5486(E) |
| PM E-DRIVE | EV makers (per-vehicle incentive) | Nothing to component makers; PMP localisation creates demand | 31 Mar 2028 | Only as a sub-supplier | S.O. 4424(E) |
| ZED certification | Udyam MSMEs | Medium: 50% of fee; handholding and zero-effect tech shares | Printed validity to 31 March 2026; operating per PIB 4 Aug 2026 | Yes | PIB |
| ADEETIE | MSMEs in 60 BEE clusters, incl. forging, foundry | Interest subvention 5% (micro/small), 3% (medium) on ₹10 lakh–₹15 cr loans | FY2025-26 to FY2027-28 | Yes, if in a listed cluster | BEE |
| Tamil Nadu MSME Policy 2021, thrust sector | MSMEs making auto parts and components | 25% of plant & machinery, max ₹1.5 cr | No end date printed | Yes | G.O.37 ch.8 |
| Maharashtra IISP 2025, MSME interest subsidy | New/expanding manufacturing MSMEs | 5% p.a., max ₹1 cr a year, 5 years in class A talukas | 30 Dec 2030 | Yes | IISP 2025 para 4.1.1(a) |
| Karnataka IP 2025-30, medium capital subsidy | New medium units; expansions adding ≥25% of existing fixed assets (p.14) | 25% / 20% / 10% of fixed assets (Zone 1/2/3), max ₹10 / 8 / 4 cr | 2030 (policy title) | Yes | KA IP p.46 |
| Haryana EV Policy 2022, capital subsidy | New EV and EV-component units in B/C/D blocks; expansions adding ≥50% of existing FCI | Medium: 20% of FCI, max ₹50 lakh, first 5 units per segment | 5 years from 10 Jul 2022 | Only for EV parts | HR scheme clauses 2, 4, 5 |
| Gujarat AGS-MSME interest subsidy | Manufacturing MSMEs | 7% / 6% / 5% by taluka category, max ₹35 / 30 / 25 lakh a year | No date in summary | Yes | iNDEXTb p.12 |
PLI Auto: the clauses that decide it
The 2021 notification (outlay ₹25,938 crore) pays Component Champions a share of Determined Sales Value: sales of pre-approved advanced-technology parts minus FY2019-20 sales.
Four conditions shut out a mid-size supplier:
- Size test (para 3.2). The global group needs ₹500 crore of automotive revenue and ₹150 crore of gross block, both on audited accounts for the year ending 31 March 2021.
- Investment test (para 3.2(c)). A Component Champion needs ₹250 crore of cumulative new domestic investment by 31 March 2027, with yearly milestones that start at ₹40 crore.
- Sales floor (para 3.3.3.3). The first-year threshold is ₹25 crore of Determined Sales Value, and it must grow 10% a year.
- Product test. Each part needs at least 50% domestic value addition, certified by an MHI testing agency (DVA rule as amended by S.O. 3863(E)).
The application window was 60 days (guidelines, para 5.1); pliauto.in listed no new call on 20 Oct 2026.
PLI is not for you if your group's FY2020-21 revenue was under ₹500 crore, you are not on the approved list, or your parts are conventional ICE parts outside MHI's advanced-technology list.
Where a 300-person plant does gain is as a Tier-2 supplier. The 28 Feb 2026 list names 53 Component Champions and 18 Champion OEMs. MHI told the Lok Sabha that the DVA rule is expanding EV localisation (reply 1445, 9 Dec 2025), so Champions have reason to buy machined, cast and forged parts locally.
Payouts are small: ₹1,350.83 crore to five applicants as on 30 Nov 2025, with eligible sales of ₹32,879 crore against a ₹2,31,500 crore target to March 2028 (same reply).
PM E-DRIVE: demand, not cash
PM E-DRIVE runs to 31 March 2028, with claims due by 31 December 2027 (S.O. 4424(E), 10 Aug 2026). It pays per vehicle, capped at 15% of ex-factory price for e-2Ws and e-3Ws.
The Phased Manufacturing Programme (PMP) is what reaches suppliers. For e-trucks, S.O. 4871(E) requires traction-motor manufacturing, from magnet fitment to cables, to be done in India from 1 April 2027. That is a sales opening for shaft, housing and stamping suppliers.
ZED and ADEETIE: small cheques you can actually get
The ZED guidelines print a validity to 31 March 2026, yet on 4 Aug 2026 the Ministry of MSME still called it running (headline 75% is the top tier; medium units get 50%), with over ₹913 crore paid. Our ZED and Lean breakdown works the fees for a medium plant.
ADEETIE subsidises interest on energy-efficient equipment where savings of at least 10% are sustained, and reimburses a medium unit's investment-grade energy audit up to ₹1 lakh.
Worked example: a 300-person plant adds a ₹10 crore line
Assume a medium supplier (P&M ₹30 crore, all fixed assets ₹36 crore, turnover ₹150 crore; medium limits are ₹125 crore and ₹500 crore per S.O. 1364(E), 21 Mar 2025) expands with ₹10 crore of machines on a ₹7.5 crore loan at 9.5%. All figures are "up to".
| Where the plant is | Measure | Our arithmetic | Up to (₹) |
|---|---|---|---|
| Anywhere | PLI Auto | Fails para 3.2 size test | 0 |
| Tamil Nadu | Thrust-sector capital subsidy | P&M +33% meets para 5.2.1 (turnover must also rise 25%); 25% × ₹10 cr, capped | 1.5 crore |
| Maharashtra, class A taluka | Interest subsidy | Plant must bear 5%, so 4.5% × ₹7.5 cr × 5 years (initial balance) | 1.69 crore |
| Karnataka, Zone 1 / Zone 3 | Medium capital subsidy | ₹10 cr = 28% of fixed assets, qualifies; 25% or 10% × ₹10 cr | 2.5 / 1.0 crore |
| Gujarat, category 1 | Interest subsidy | Plant bears minimum 2%, so 7% × ₹7.5 cr = ₹52.5 lakh, capped at ₹35 lakh a year × 7 | 2.45 crore |
| Haryana, B block, EV parts only | EV capital subsidy | Under 50% of existing FCI (clause 4.iii); a new unit gets 20%, capped | 0 (new unit: 50 lakh) |
| Forging/foundry cluster | ADEETIE (if the line saves ≥10% energy) | 3% × ₹7.5 cr a year, to FY2027-28 | 22.5 lakh a year |
Tamil Nadu requires auto-parts units to hold ISO 9001 or IATF 16949 (G.O.37, para 8.5); see what IATF auditors flag.
Where sources differ
- PLI tenure. As of 20 Oct 2026, the MHI scheme page still shows incentive years FY2022-23 to FY2026-27. Gazette S.O. 5486(E) of 29 Dec 2023 rewrote para 3.3.1.1 to FY2023-24 through FY2027-28, "not beyond" 31 March 2028, with the last payout in FY2028-29 (Table 3). The gazette governs.
- Approved applicants. The Lok Sabha reply lists 82 as on 30 Nov 2025, while the portal list of 28 Feb 2026 names 71.
- Haryana. The policies page listed no general industrial policy newer than HEEP 2020 (checked 20 Oct 2026), so this page uses only the 2022 EV scheme.
- Gujarat. ic.gujarat.gov.in did not respond on 20 Oct 2026, so rates come from the state's iNDEXTb summary.
What to ask before you file
- DIC or nodal agency: "Which zone is my taluka or block, which clause covers auto parts, and does my expansion meet your definition?"
- Bank: "Can this loan carry the state interest subsidy and ADEETIE together?"
- Tier-1 customer: "Which PLI parts need more local content, and when?"
Where Mama fits
Subsidies pay for new machines, not for hours lost on the ones you own. Mama reads a plant's existing cameras and sends the owner a short morning note on where machine hours went idle yesterday; it watches machines, not people. That shows whether a ₹10 crore capacity gap is real before you file. Leave an email or phone in the form below. Related: selling more machine hours, spending less on scrap and tooling, textile government support.
FAQ
Can an MSME apply for the PLI scheme for auto components? Not in practice. MSMEs are not barred by name, but para 3.2 needs ₹500 crore group revenue and ₹150 crore gross block (FY2020-21), and the window has closed.
What is the incentive rate under the PLI Component Champion scheme? 8% of Determined Sales Value up to ₹250 crore, rising to 11% above ₹750 crore, plus 5% for battery-electric and fuel-cell parts (S.O. 3946(E), Table 2).
Which state gives the most subsidy for an auto component unit? It depends on location. On a ₹10 crore expansion, Karnataka Zone 1 gives up to ₹2.5 crore of capital subsidy against Tamil Nadu's ₹1.5 crore cap, if the state's expansion test is met; Maharashtra and Gujarat pay interest subsidy instead.