New Delhi, February 11: Tata Motors, Suzuki, Hyundai, Ford, Ashok Leyland, Kia, and Bajaj Auto are among 20 companies approved for Production Linked Incentive (PLI) scheme for the automobile sector, the Ministry of Heavy Industries said on Friday.
The Government has approved the Production Linked Incentive (PLI) scheme for Automobile and Auto Component Industry in India for enhancing India’s manufacturing capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs 25,938 crore. #BoycottHyundai Trends on Twitter After Car Maker Posts Ad Asking For ‘Freedom For Kashmir’ in Pakistan, Posts Removed Later, Hyundai India Issues Statement.
PLI scheme for automobile and auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products.
A total of 115 companies had filed their application under the PLI scheme for Automobile and Auto Component Industry in India which was notified on 23 September 2021, the Ministry of Heavy Industries said.
“The scheme was open for receiving applications till 23:59:59 hours IST on 9 January 2022. Incentives are applicable under the scheme for determined sales of AAT products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of 5 consecutive years,” it said.
The Ministry of Heavy Industries has processed the applications received under Champion OEM (original equipment manufacturer) Incentive scheme and 20 applicants (along with their 12 subsidiaries) have been approved under this category of the scheme.
“Applications for Component Champion Incentive scheme are being processed separately,” the ministry said.
Ten companies have been selected for Champion OEM (Except 2W & 3W). These companies include Ashok Leyland Limited, Eicher Motors Limited, Ford India Private Limited, Hyundai Motor India Limited, Kia India Private Limited, Mahindra & Mahindra Ltd, PCA Automobiles India Private Limited, Pinnacle Mobility Solutions Private Limited, Suzuki Motor Gujarat Private Limited and Tata Motors Limited.
Four companies have been approved for Champion OEM two-wheelers and three-wheelers. It includes Bajaj Auto Limited, Hero MotoCorp Ltd, Piaggio Vehicles Private Limited, and TVS Motor Company Limited.
Six companies have been approved for New Non-Automotive Investor (OEM) category. It includes Axis Clean Mobility Private Limited, Booma Innovative Transport Solutions Private Limited, Elest Private Limited, Hop Electric Manufacturing Private Limited, Ola Electric Technologies Private Limited and Powerhaul Vehicle Private Limited.
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors, etc.
This PLI scheme for automotive sector (Rs 25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (Rs 18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)
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