A total of 115 companies have filed their application under the Production-Linked Incentive (PLI) Scheme for automobile and auto sector in India, the government said on Monday. The scheme was notified on September 23, 2021 and was open for receiving applications till January 9, 2022.
Incentives are applicable under the scheme for determined sales of advanced automotive technology products (vehicles and components) manufactured in India from April 2022 onwards for a period of five consecutive years, the government stated.
Total number of applications:
The scheme for the sector was approved with a budgetary outlay of Rs 25,938 crore. It aims at boosting domestic manufacturing of these products.
In terms of the applications received from local as well as globally headquartered groups engaged in or proposing to manufacture AAT vehicles, the PLI scheme has been a huge success, notified Ministry of Heavy Industries.
The PLI scheme proposes financial incentives to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.
The scheme's prime objectives are overcoming cost disabilities, creating economies of scale, building a robust supply chain in areas of AAT products and to generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.
The scheme has two components — Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Champion OEM (original equipment manufacturer) Scheme is a 'sales value linked' scheme, applicable on battery electric vehicles and hydrogen fuel cell vehicles of all segments.
"This Rs 25,938 crore PLI Scheme for automotive sector, along with the already launched PLI scheme for Advanced Chemistry Cell worth Rs 18,100 crore and Faster Adaption of Manufacturing of Electric Vehicles worth Rs 10,000 crore, will enable the country to leapfrog from traditional fossil fuel-based transportation system to environmentally cleaner, sustainable, advanced and more efficient EV based system," the government further stated.