115 Firms Apply For Rs 25,938 Crore PLI Scheme For Automobile And Auto Components
A total of 115 companies have filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23 September 2021, an official release said on Monday (10 January).
The scheme, which has been approved by the government for boosting India’s auto manufacturing capabilities, was open for receiving applications till 9 January 2022.
The Auto PLI scheme, with budgetary outlay of Rs 25,938 crore, proposes financial incentives to firms to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.
Incentives are applicable under the scheme for determined 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 Ministry of Heavy Industries said in a release.
The prime objectives of the scheme include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment.
The PLI scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products, the ministry said.
As many as 115 applications in the five categories — 13 from Champion OEM (Except 2-wheelers and 3-wheelers), 7 from Champion OEM (2W and 3W), 9 from New Non-Automotive Investor (OEM) companies, 83 from Component Champion and 3 from New Non-Automotive Investor (Component) companies — were received for the PLI scheme.
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business.
The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors, etc.