Sunday, February 25, 2024

A Total 115 Auto Companies Apply For PLI Scheme

Ministry Of Heavy Industries Received 115 Applications From The Auto Sector

A total of 115 vehicle and automobile-related ancillary companies filed for the Production Linked Incentive (PLI) Scheme in India, according to the Ministry of Heavy Industries. The scheme was open for applications until January 9, 2022, at midnight. From April 1, 2022, onwards, incentives would be available under the scheme for assessing sales of Advanced Automotive Technology (AAT) products (vehicles and components) built in India for a period of five years, according to the ministry.

A Total 115 Auto Companies Apply For PLI Scheme

With a budgetary commitment of Rs. 25,938 crore, the government introduced the PLI Scheme for the car and auto component industries in India, with the goal of improving India’s manufacturing capabilities for modern automotive products. “PLI Scheme for Automotive Sector along with PLI scheme for ACC and FAME to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV)-based system.” the ministry added.

PLI Scheme Goal

The PLI Scheme for the automotive industry is open to both existing and new participants. Champion OEM Incentive Scheme and Component Champion Incentive Scheme are the two halves of the scheme. The Champion OEM Incentive programme is a “sales value linked” programme that applies to all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles. The Component Champion Incentive programme is a “sales value related” programme that applies to Advanced Automotive Technology (AAT) car components, as well as Completely Knocked Down (CKD) and Semi Knocked Down (SKD) kits. Two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and tractors are all covered. The scheme’s goals include overcoming economic barriers, achieving economies of scale, and establishing a stable supply chain for ATT products. According to the government, the PLI Scheme has been a major success in terms of applications received from both local and global headquartered companies. The PLI scheme, coupled with the PLI schemes for Advanced Chemistry Cell (ACC) of Rs. 18,100 crore and Faster Adaption of Manufacturing of Electric (FAME) of Rs. 10,000 crore, will help the country to transition to more advanced and fuel-efficient electric vehicles, according to the release.

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