New Delhi, Nov. 17 -- The ministry of heavy industries (MHI) plans to reduce the budgetary allocation for the Rs.25,938-crore PLI-Auto scheme for FY26 to Rs.2,000 crore, as it has received claims for manufacturers for roughly that amount this year, according to two people aware of the development. MHI is in the process of budgetary consultations with the finance ministry.

The allocation for the scheme was a little over Rs.2,800 crore for FY26.

The scheme was launched in 2021 to provide manufacturing incentives for companies making zero-emission vehicles or their components, marking one of the biggest policy drivers for India's emerging electric vehicle (EV) ecosystem. This includes zero-emission models of all vehicle segments.

"The bud...