115 companies file applications under PLI scheme for auto sector
Of the applicants, 13 are original equipment manufacturers (with the exception of 2W and 3W), 7 are 2W & 3W OEMs, 83 are component companies, 9 are new non-automotive (OEM) investor companies and 3 are new non-automotive (component) investor companies.
Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 onwards for a period of 5 consecutive years.
“The Production Linked Incentive (PLI) Scheme for Automobile and Auto components proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products”, Ministry of Heavy Industries (MHI) said in a statement. The incentive structure is intended to encourage the industry to make fresh investments in indigenous supply chain/ deep localization of Advanced Automotive Technology products.
The PLI Scheme will also generate employment. This scheme has been designed to facilitate the automobile industry to move up the value chain into higher value-added products.
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 – 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 schemeis 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 tractor.
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