PLI scheme for Automobile, Auto Component Industry attracts investment of Rs 74,850 crore

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.

Heavy Industries Ministry said, the proposed investment of over Rs 45,000 crore is from approved applicants under Champion Original equipment manufacturers' Incentive Scheme and over Rs 29,000 crore from approved applicants under 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 on September 23, 2021.

Heavy Industries Minister Dr. Mahendra Nath Pandey has said, the overwhelming response shows that Industry has reposed its faith in India's stellar progress as a world-class manufacturing destination. The Government had approved the PLI Scheme for the Automobile and Auto Component Industry in India for enhancing the Country's Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs 25,938 crore. The PLI Scheme for the automobile and auto components industry has two components – the Champion OEM incentive scheme and the Component Champion incentive scheme.

The PLI Scheme for the auto sector was open to existing automotive companies as well as new investors. The 'Champion OEM' incentive scheme is a sales value linked scheme and is 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 Advanced Automotive Technology components of vehicles, completely knocked down / semi-knocked down kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles and tractors.