Tata Motors, Eicher Motors, Hero Motocorp among 20 companies approved under PLI scheme for auto and auto component industry
New Delhi/IBNS: The Centre on Friday approved 20 companies, who had applied for the Production Linked Incentive (PLI) Scheme for the automobile and automobile component industry under the “Champion OEM Incentive Scheme”.
The applications that have been approved under the Champion OEM Incentive Scheme are Ashok Leyland Limited, Eicher Motors Limited, Ford India Private Limited, Hyundai Motor India Limited, Kia India Private Limited, Mahindra & Mahindra Ltd, PCA Automobiles India Private Limited, Pinnacle Mobility Solutions Private Limited, Suzuki Motor Gujarat Private Limited, Tata Motors Limited, Bajaj Auto Limited, Hero MotoCorp Ltd, Piaggio Vehicles Private Limited, TVS Motor Company Limited, Axis Clean Mobility Private Limited, Booma Innovative Transport Solutions Private Limited, Elest Private Limited, Hop Electric Manufacturing Private Limited, Ola Electric Technologies Private Limited, Powerhaul Vehicle Private Limited.
A total of 115 companies had filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23 September2021.
The scheme was open for receiving applications till 23:59:59 hours IST on 9 January 2022.
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 five consecutive years.
The PLI scheme for Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in/ proposing to manufacture Advanced Automotive Technology vehicles/ products, the Ministry of Heavy Industries said.
The scheme has been a huge success in terms of overwhelming response received with a proposed investment of Rs 45,016 cr from approved applicants, it added.
Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands.
The provision of the incentive of up to 18 percent, to encourage industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products of PLI scheme for automotive sector and enhance India’s manufacturing capabilities for AAT, which has a budgetary outlay of Rs 25,938 crore.
The PLI scheme for auto sector is expected to bring in investments of over Rs 42,500 crore in five years and lead to incremental production of over Rs 2.3 lakh crore.
The scheme is expected to create additional employment opportunities for over 7.5 lakh people.
Further, this will increase India’s share in the global automotive trade.