Auto PLI attracts investment of Rs 74,850 cr for five years

The Production Linked Incentive (PLI) scheme introduced by the government for automobile and auto component sectors in India has attracted investment proposals of Rs 74,850 crore for the next five years, up by 76.11% than the planned investment of Rs 42,500 crore. According to data, 20 applicants approved the proposed investment of Rs 45,016 crore under the Champion Original Equipment Manufacturer (OEM) Incentive scheme and Rs 29,834 crore from 75 applicants under the Component Champion Incentive scheme. Overall, 115 companies applied under the PLI scheme for the automobile and auto component sectors across India. Out of which, five Auto OEM companies had participated in both parts of the scheme. The incentives are applicable under the PLI scheme for Determined Sales of Advanced Automotive Technology (AAT) vehicle products manufactured in India from 1 April 2022 for five consecutive years. Earlier, the government launched the PLI scheme for the automobile and auto component sectors for enhancing the manufacturing capabilities of India for Advanced Automotive Products (AAT). It had a budgetary outlay of Rs 25,938 crore. The PLI scheme for the automobile and auto component sectors proposes financial incentives to boost the domestic manufacturing of AAT products and attract investments in the automobile component manufacturing value chain. The main objective of the scheme includes overcoming cost disabilities, creating economies of scale, providing more employment opportunities and building a robust supply chain in AAT products. This scheme will facilitate the automobile industry to increase and boost the value chain into higher value-added products in the automotive industry. Image Source Also read: Govt to increase fund allocation for solar PLI scheme to Rs 240 bn