115 automotive companies apply for PLI scheme, says government
- PLI scheme has been devised to promote local manufacturing of auto components and automobiles in order to boost the Indian economy.
As many as 115 automotive companies have filed applications to seek benefits under the Production Linked Incentive (PLI) scheme for the automobile and auto component sector, said the Ministry of Heavy Industries in an official statement on Monday.
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The PLI scheme was notified on 23rd September 2021. This scheme was open for receiving applications from applicants till 9th January 2022. Under this scheme, incentives are applicable for determining sales of advanced automotive technology products, including vehicles and components manufactured in India from April 2022 onwards for a period of five consecutive years.
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The PLI scheme for the automobile and component sector was approved with a budgetary outlay of ₹25,938 crore. This scheme aims at boosting the domestic manufacturing of these products. The ministry has also said that 83 applications have been received under the component champion incentive scheme.
The scheme is a sales value linked scheme, applicable on advanced automotive technology components of vehicles, completely knocked down (CKD), semi-knocked down (SKD) kits. The scheme covers two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors.
The PLI scheme has two components - Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Scheme is a 'sales value linked' scheme, applicable on battery electric vehicles and hydrogen fuel cell vehicles of all segments, says PTI.
Under the Champion OEM scheme, a total of 13 applications have been filed, and seven under two and three-wheelers. Nine applications have been received under a new non-automotive investor (OEM) company and three under a new non-automotive investor (component) firm.
Commenting on the development, Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta said that it was an encouraging response from companies in the Indian automobile and auto component industry to the PLI scheme.
"With a strong underlying factor being advanced technologies, this will force the Indian companies to focus more on R&D and innovation and they will have to think differently. This will change the Indian industry which has so far been a 'build to print' to innovation-led ones," Mehta said.
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