PLI Scheme Auto PLI gets investment proposals worth Rs 75K crore, exceeds govt expectations
New Delhi/UNI: The production linked incentive (PLI) scheme for auto & auto components has attracted investment proposals of Rs 74,850 crore against the target estimate of Rs 42,500 crore over a period of five years.
Auto biggies like Maruti Suzuki, Hyundai, Tata Motors, and M&M are among the successful applicants under the scheme that offers incentives up to 18 percent of determining sales value to promote fresh investments in the sector.
"The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive Scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive Scheme," a press release from Heavy Industry Ministry said.
The auto PLI scheme has two components -- Champion OEM incentive scheme and Component Champion incentive scheme.
A total of 95 applicants have been approved under this PLI scheme.
The Heavy Industry Ministry had earlier approved 20 applicants along with their 12 subsidiaries for the Champion OEM Incentive scheme.
Subsequently, it processed the applications received under the Component Champion incentive scheme, and 75 applicants (along with their 56 subsidiaries) have been approved under this category of the scheme.
A total of 115 companies had filed their application under the PLI scheme for the automobile and auto component industry in India which was notified on 23 September 2021.
Out of which, five auto OEMs (original equipment manufacturers) had applied for both parts of the scheme. Incentives are applicable under the scheme for determining sales of advanced automotive technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of 5 consecutive years.
The government approved the PLI scheme for the automobile and auto component industry in India for enhancing the country's manufacturing capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs 25,938 crore.
The scheme proposes financial incentives to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.
The prime objectives of the scheme include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment.
"This scheme will facilitate the automobile industry to move up the value chain into higher value-added products," the government has said.
Reacting to the response to the auto PLI scheme, Heavy Industries Minister Mahendra Nath Pandey said, “The overwhelming response shows that Industry has reposed its faith in India's stellar progress as a world class manufacturing destination which resonates strongly with Hon'ble Prime Minister's clarion call of AtmaNirbharBharat - a self-reliant India. India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system”.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
