New Delhi: The Production Linked Incentive (PLI) scheme for automobile and auto component industry in India has been successful in attracting proposed investment of Rs 74,850 crore against the target estimate of investment Rs 42,500 crore over a period of five years. The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive Scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive Scheme.

A total of 115 companies had filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23 September 2021. Out of which, five auto OEM companies had applied for both the parts of the scheme. 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 Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of five consecutive years.

Union Heavy Industries Minister Dr Mahendra Nath Pandey said: “The overwhelming response shows that industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with Prime Minister Narendra Modi’s clarion call of Aatma Nirbhar Bharat – a self-reliant India. India will surely take a huge leap towards a cleaner, sustainable, advanced and more efficient electric vehicles (EVs) based system.”

The government approved the 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. PLI Scheme for automobile and auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) 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. /BI/