115 companies applied to get benefit for automobiles under PLI

15 Jan 2022 CW Team

The Ministry of Heavy Industries told the media that the automobile and the auto component sector received applications from 115 companies to benefit under the public linked incentive (PLI) scheme.

The PLI scheme was notified on 23 September 2021 and was open till 9 January 2022.

The incentives are applicable under the scheme for the sales of advanced automotive technology products made in India from April 2022 to five years.

The scheme had received approval with a budgetary outlay of Rs 25,938 crore, and it aims to boost the domestic manufacturing of automotive products.

According to a statement, 83 applications have been received under the component champion incentive scheme.

It is a sales value linked scheme applicable to advanced automotive components, completely knocked down (CKD) or semi-knocked down (SKD) kits, vehicle aggregates of 2 and 3 wheelers, passenger vehicles, commercial vehicles and tractors.

The PLI scheme comprises - Champion Original Equipment Manufacturer (OEM) Incentive Scheme and Component Champion Incentive Scheme.

The Champion OEM Incentive Scheme is a sales value linked scheme, which is applicable on electric vehicle (EV) batteries and hydrogen fuel cell vehicles. 13 applications have been filed under the Champion OEM scheme and seven under 2 and 3 wheelers.

Nine applications were received under the non-automotive investor OEM company and three under the new non-automotive investor company.

Vinnie Mehta, Director-General of the Automotive Component Manufacturers Association of India (ACMA), said that the PLI scheme received a good response from Indian automobile and auto components.

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