PLI scheme for the auto sector

Major boost for Make in India: 115 cos file applications under PLI scheme for the auto sector

With a budgetary cost of Rs 25,938 crore, the sector’s project was authorized. Its goal is to increase the home production of these products.(Business Today)

The government said on Monday that 115 companies have applied for the Production-Linked Incentive (PLI) Scheme for the car and auto sector in India. The scheme was announced on September 23, 2021, and applications were accepted until January 9, 2022.

According to the government, incentives will be available under the scheme for determining sales of innovative automotive technology items (vehicles and components) built in India from April 2022 onwards for a period of five years.

A total number of applications:

  • Champion OEM (Except 2W & 3W): 13
  • Champion OEM (2W & 3W): 7
  • New Non-Automotive Investor (OEM) Company: 9
  • Component Champion: 83
  • New Non-Automotive Investor (Component) Company: 3
  • Total: 115

A budgetary allocation of Rs 25,938 crore was approved for the sector’s project. Its goal is to increase home production of these products.

According to the Ministry of Heavy Industries, the PLI plan has been a major success in terms of applications received from local as well as worldwide headquartered groups working in or seeking to produce AAT vehicles.

The PLI scheme promotes financial incentives to enhance domestic AAT manufacture and attract investments in the automobile supply chain.

The scheme’s main goals are to overcome cost barriers, create economies of scale, construct a strong supply chain in the area of AAT goods, and create jobs. This approach will make it easier for the automobile industry to advance up the value chain and produce higher-value-added goods.

Champion OEM Incentive Scheme and Component Champion Incentive Scheme are the two halves of the program.

The Champion OEM (original equipment manufacturer) Scheme is a “sales value-linked” program that applies to all segments of battery electric and hydrogen fuel cell cars.

“This Rs 25,938 crore PLI Scheme for the 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.

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