Mahindra & Mahindra, Tata Motors bag Rs 246 crore incentives under PLI scheme for advanced auto technologies
New Delhi: The government has sanctioned incentive payments amounting to Rs 246 crore for Mahindra & Mahindra (M&M) and Tata Motors under the Rs 25,938 crore Production Linked Incentive (PLI) scheme for the auto industry, PTI reported on Thursday.
The scheme is designed to bolster domestic manufacturing of advanced automotive technologies.
Heavy Industries Minister H D Kumaraswamy lauded the achievements of Tata Motors and M&M, stating that their advancements showcased India's growing capabilities.
He expressed optimism about more participants leveraging the benefits of the PLI scheme.
Tata Motors received Rs 142.13 crore as incentives based on its 2023-24 fiscal year sales of Tiago EV, Starbus EV, and Ace EV, which collectively amounted to Rs 1,380.24 crore.
Meanwhile, M&M secured Rs 104.08 crore for its electric three-wheeler models (Treo, Treo Zor, and Zor Grand), with sales totalling Rs 800.59 crore during the same period.
M&M’s claims included a cumulative investment of Rs 978.30 crore, along with certification of domestic value addition by the Automotive Research Association of India.
According to the PTI report, a government official confirmed the approvals, stating, "The total claims from these two applicants amount to approximately Rs 246 crore, which have been examined and recommended by the Project Management Agency (PMA) and subsequently approved by Ministry of Heavy Industries (MHI)."
The PLI scheme for the auto and auto components sector spans from 2023-24 to 2027-28.
The incentive disbursements are scheduled between 2024-25 and 2028-29.
It offers incentives ranging from 8% to 18% for components related to electric vehicles, hydrogen fuel cells, and other advanced technologies.
The scheme mandates a minimum of 50% domestic value addition and encompasses both domestic and export sales.
By September 2024, it had already driven investments of Rs 20,715 crore and incremental sales of Rs 10,472 crore.
The first incentive payments are slated for 2024-25.
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