Comments
A total of 115 companies have filed their applications under the production linked incentive (PLI) scheme for automobile and auto component industry in India which was notified on September 23.
The scheme was open for receiving applications till January 9 and the incentives are applicable under the scheme for determined sales of advanced automotive technology (AAT) products (vehicles and components) manufactured in India from April this year onwards, for a period of five consecutive years, the Ministry of Heavy Industries said on Monday.
Sectoral break-up
The budgetary outlay of this scheme was pegged at ₹25,938 crore. The PLI scheme for automobile and auto components proposes financial incentives to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.
Of these 115 companies, 83 are under the Component Champion category, 13 in Champion OEM (except two-wheeler and three-wheeler), nine new non-automotive investor (OEM) company, seven Champion OEM (two-wheeler and three-wheeler) and three new non-automotive investor (component) company, the statement said.
Lumax, Sona Comstar, Minda Industries, Asahi Glass, JBM, Minda Corp, Bharat Forge, Rane, Bosch, Lucas-TVS, Hella and ZF are some of the names from the auto components sector that have applied for the PLI.
The 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 — Champion OEM (original equipment manufacturer) 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 AAT components of vehicles, completely knocked down (CKD)/ Semi knocked down (SKD) kits, vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors.
The prime objectives of the scheme include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products.
This scheme for automotive sector (₹25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to more efficient EV-based system.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.