Auto companies may get quarterly PLI incentives from govt
- Auto companies have requested the government to pay the incentives every quarter instead of paying annually, while they have also requested to bring more components under the ambit of the scheme.
The Indian government has formed a panel to examine requests from the automobile manufacturers in the country seeking quarterly incentive payouts and inclusion of more automotive components under the Production Linked Incentive (PLI) scheme, PTI has reported quoting an official.
The government official has reportedly said that in 2024, the incentives under PLI for the automobile sector will be given annually but a committee has been formed in the ministry that will look into the requests of auto OEMs seeking payouts of the incentive scheme every quarter, instead of annual incentive payouts at present. The panel will reportedly also assess the requests by some automobile manufacturers to bring more auto components under the ambit of the PLI scheme.
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Speaking about this move, Additional Secretary in the Ministry of Heavy Industries Hanif Qureshi reportedly said that currently only 103 automotive components are covered under the PLI scheme, which would be increased. "One of the requests is that certain (Advanced Automotive Technology) AAT components be included. We have only 103 components," he reportedly said. Qureshi said that some OEMs have given a list of some components, seeking their inclusion in the scheme.
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This move comes in line with Union Heavy Industries Minister Mahendra Nath Pandey's comment. Back in January this year, he said that the government constituted a committee to examine the auto industry's demand for including more components in the PLI scheme for automobile and auto components. He also added that this committee will be chaired by an Additional Secretary in the Ministry of Heavy Industries and will have 11 members, including those from testing agencies like ARAI and the auto industry.
The PLI scheme was introduced by the Indian government with the aim of boosting local manufacturing across different industries. The automobile industry being one of the major manufacturing sectors, was brought under the ambit of the scheme, with an aim to make India a major vehicle and component manufacturing hub.