International groups approved for Champion OEM incentive scheme
PLI Auto scheme has been successful in attracting proposed investment of Rs.67,690 crore against the target estimate of Rs.42,500 crore investment over a period of five years, the Ministry of Heavy Industries said on 28 Dec 2022.
A total of 85 applicants (18 under Champion OEM and 67 under Component Champion) have been approved under PLI Scheme for Automobile and Auto Component, said the Ministry in a 2022 review.
Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as South Korea, the US, Japan, France, Italy, the UK and Netherlands.
It also envisaged Rs.27,000 crore investment under National Programme on Advanced Chemistry Cell (ACC).
The Ministry said 7.43 lakh Electric Vehicles have been incentivized and 2,877 EV charging stations sanctioned under FAME II.
Twenty-eight projects, worth Rs.909.47 crores in value, have been approved so far under the Phase-II of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.
The Ministry elaborated on projects:
Rs.10,000 crore FAME India II Scheme has been launched to incentivize demand for Electric Vehicles (EVs) by providing upfront subsidies and creating EV charging infrastructure. One million Electric 2 Wheelers, 5 lakh Electric 3 Wheelers, 55,000 Electric Cars and 7,090 Electric Buses are to be supported under FAME II through subsidies. Allocation of Rs.1,000 crore has also been made under FAME II for provision of EV charging stations.
Redesigned in June 2021, the FAME India II Scheme has been extended for a further period of 2 years to 31 March 2024.
Till 6 Dec, 6.63 Lakh e-2W, 70,159 e-3 W, 5375 e-4 W and 3738 e-buses have received incentives of about Rs.3,305.00 crore under FAME India Scheme Phase-II.
The National Programme on Advanced Chemistry Cell (ACC) with an outlay of Rs.18,100 crore is to incentivize setting up of manufacturing facilities in the country for 50 Giga Watt Hour of ACC and 5 GWh of “Niche” ACC.
An investment of Rs.27,000 crore is envisaged under this scheme. Net saving of Rs.200,000.00 crore to Rs.250,000.00 crore on account of oil import bill reduction due to EV adoption.
Three of the approved firms under the scheme has signed the Programme Agreement to implement the PLI ACC programme for setting up manufacturing facilities of 30 GWh ACC capacity.
The Government has approved 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.
This Scheme proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain. The prime objectives of this scheme include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products.
The scheme has two components viz. Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
Apart from Indian business groups, approved applicants for Champion OEM Incentive scheme include groups from countries such as South Korea, the US, Japan, France, Italy, the UK and Netherlands. fiinews.com
