MHI says Rs.13,037 cr has been invested by end 2023
The Rs.25,938 crore Production Linked Incentive (PLI) scheme for Automobile & Auto Components (PLI-AUTO Scheme) to promote cleaner mobility and develop an ecosystem of innovation and technology has attracted proposed investment of Rs.67,690 crore against the target estimate of investment Rs.42,500 crore over a period of five years.
Launched by Ministry of Heavy Industries (MHI) companies have commenced making investments and vehicle models are being approved for availing the scheme benefits.
MHI said Rs.13,037 crore has been invested till 31 Dec 2023.
Further, 115 companies had filed 120 applications under this PLI scheme. Out of which, 85 applicants have been approved, comprising of 18 applicants for Champion OEM Incentive scheme and 67 applicants for Component Champion Incentive scheme.
Two Auto OEM companies were approved for both parts of the scheme.
Considering the need of the Auto industry, MHI has extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year and incentive will be provided for determined sales for a total of five consecutive financial years, starting from the financial year 2023-24 to 2027-28 and disbursement of incentive will take place in the following financial year.
Mahindra & Mahindra, Tata Motors, and Ola Electric have been early movers, and they have already received Domestic Value addition (DVA) certification from testing agencies for their 22 variants of Advanced Automotive Technology (AAT) products.
Mahindra & Mahindra is the 1st company to meet the DVA criteria in Three-Wheeler category, while Tata Motors is the 1st Company to meet the DVA criteria for both Four-Wheeler and Bus categories. Ola Electric is the 1st Two-Wheeler company which has met the DVA criteria.
These companies, along with IFCI Limited and Automotive Research Association of India (ARAI) were felicitated by Ministers Dr Mahendra Nath Pandey and Krishan Pal Gurjar during the PLI Auto Conclave. The vehicles which have been approved under the scheme were also displayed during the event.
Speaking on the occasion, Minister of Heavy Industries Dr. Mahendra Nath Pandey noted that with the highest contribution of 35% in GDP, his and the Automobile Industry are ready to play their role in this direction.
MHI is committed to promoting clean and environment-friendly vehicles in the country, he assured stakeholders at the MHI organized Auto PLI Conclave in New Delhi on 16 Jan 2024.
The conclave discussed and highlighted the salient features of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry.
PLI is providing financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attracting investments in the automotive manufacturing value chain. Union
Minister of State for Heavy Industries and Power Gurjar called upon the Auto Industries leaders to make concerted efforts for making India a manufacturing hub of the world.
Elaborated MHI Secretary Kamran Rizvi, “The Ministry has taken several initiatives to promote environment-friendly product manufacturing in the automotive industry, such as PLI-Auto, PLI – Advanced Chemistry Cell and FAME-2. T
“These plans focus on developing carbon-free vehicles and creating a strong ecosystem of innovation to reduce the carbon footprint in the country,” he shared. Fiinews.com
