The Production Linked Incentive for the auto sector has been successful in attracting a proposed investment of Rs 67,690 crore against the target estimate of investment
of Rs 42,500 crore over a period of five years. A total of 115 companies had filed 120 applications under this PLI scheme. Out of which, 85 applicants have been approved, comprising of 18 applicants for Champion OEM Incentive scheme and 67 applicants for Component Champion Incentive scheme. Two auto OEM companies were approved for both parts of the scheme.
The Rs 25,938 crore PLI scheme for automobile & auto components (PLI-AUTO Scheme) to promote cleaner mobility and develop an ecosystem of innovation and technology, launched by Ministry of Heavy Industries (MHI), has already started giving results, as companies have commenced making investments and vehicle models are being approved for availing the scheme benefits, as emerged from the Auto PLI Conclave on Tuesday organised by the MHI to discuss and highlight the salient features of the PLI scheme for automobile and auto component industry. The PLI is providing financial incentives to boost domestic manufacturing of advanced automotive technology (AAT) products and attracting investments in the automotive manufacturing value chain. “Soon India will be the 3rd largest economy in the world. With the highest contribution of 35% in GDP, MHI and the automobile industry are ready to play their role in this direction,” noted Minister MHI, Mahendra Nath Pandey. Considering the need of the industry, MHI has extended the tenure of the PLI scheme by one year and incentive will be provided for determined sales for a total of five consecutive financial years.
, starting from the financial year 2023-24 to 2027-28 and disbursement of incentive will take place in the following financial year.
Mahindra & Mahindra, Tata Motors, and Ola Electric have been early moves, and they have already received domestic value addition certification from testing agencies for their 22 variants of AAT products. Mahindra & Mahindra is the first company to meet the DVA criteria in three-wheeler category, while Tata Motors is the first company to meet the DVA criteria for both four-wheeler and bus categories. Ola Electric is the first two-wheeler company which has met the DVA criteria.