Maruti Suzuki, Hero MotoCorp among 75 companies to get sops under auto PLI
Maruti Suzuki, Hero MotoCorp, Lucas-TVS, Tata Cummins and Toyota Kirloskar Auto Parts are among the 75 automotive firms approved for receiving incentives under the Production Linked Incentive (PLI) scheme for the automobile and auto components sector, the central government on Tuesday has said. The PLI scheme for the automotive sector has earmarked an investment of ₹29,834 crore under the Component Champion Incentive Scheme.
The incentives will be provided by the Ministry of Heavy Industries. The ministry had previously selected 20 applicants under the scheme. The PLI scheme offers incentives of up to 18 per cent to encourage the industry players to make fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products. The government aims to reduce the auto industry's dependence on foreign-based suppliers. Also, the scheme is aimed at boosting the domestic manufacturing sector, which would make the country a major automotive supply chain player. Also, it would boost employment in the country as well.
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The government in an official statement has said that the PLI scheme for the automobile and auto component industry in India has been able to attract a proposed investment of ₹74,850 crore against the target estimate of investment ₹42,500 crore over a period of five years.
"The proposed investment of ₹45,016 crore is from approved applicants under Champion OEM Incentive Scheme and ₹29,834 crore from approved applicants under Component Champion Incentive Scheme," the statement further said. It also said that apart from Indian business groups, approved applicants include companies from Japan, Germany, US, UK, South Korea, Ireland, France, Belgium, Netherlands and Italy.
Speaking about the PLI scheme for the automobile and auto component sector, Mahendra Nath Pandey, minister for heavy industries said that India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient electric vehicles (EV) based systems.