NEW DELHI: Maruti Suzuki, Hero MotoCorp, Bosch, Mitsubishi Electric and Tata Autocomp are among the 95 companies that have received approval under the government’s ambitious Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India.
According to a notification by the Ministry of Heavy Industries (MHI), the scheme has been successful in attracting a proposed investment of Rs 74,850 crore, 75% more than the target estimate of Rs 42,500 crore.
The proposed investment of Rs 45,016 crore is from approved applicants under the Champion Original Equipment Manufacturer (OEM) Incentive Scheme and Rs 29,834 crore from approved applicants under the Component Champion Incentive Scheme.
A total of 115 companies had filed their application under the PLI Scheme for Automobile and Auto Component Industry in India which was notified in September 2021. MHI had earlier approved 20 applicants (along with their 12 subsidiaries) for the Champion OEM Incentive scheme. Out of the total, 5 auto OEMs have applied for both parts of the scheme.
Sunjay J Kapur, President ACMA & Chairman of Sona Comstar said, “A slew of policy measures announced in the recent past including the extension of FAME-2 scheme, the PLI on ACC battery, the policy initiative on battery swapping and energy as service, among others, will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive.”
PLI scheme for this sector was announced by the government to overcome cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technologies (AAT). The scheme will provide an incentive of up to 18% to successful applicants for a period of 5 years.