Six OEMs gets DVA certificate
Companies, led by Tata Motors and Mahindra & Mahindra, have committed over Rs.25,000 crore under the PLI Scheme for Automobile & Auto Components or PLI-Auto which was approved by the Cabinet on 15 Sept 2021 with budgetary outlay of Rs.25,938 crore http://cabinetsec.gov.in.
The capital investment commitment as of Dec 2024 is for setting up new production facilities and upgrading technology, the Ministry of Heavy Industries said in an update on 27 Mar.
The scheme also has created thousands of direct and indirect jobs in manufacturing, supply chain management and R&D https://www.makeinindia.com/.
Notably, new electric vehicle (EV) production plants have led to localized employment in manufacturing hubs, the Ministry added https://www.cardekho.com/.
Aggregate incentive of Rs.322 crores have been disbursed under the scheme as of now – FY 2023-24 was the first performance year of the scheme for which disbursement happened in FY 2024-25.
So far, 6 OEMs have got Domestic Value Addition (DVA) certificate for 66 Approved Variants and 7 component manufacturers has got DVA certificate for 22 Approved Variants as on date.
The PLI-Auto scheme is playing a transformative role in enhancing India’s automotive manufacturing ecosystem, reducing dependence on imports, and integrating the domestic industry into the global supply chain, the Ministry stressed.
The PLI-Auto Scheme envisages to overcome the cost disabilities to the industry for manufacturing and boost domestic manufacturing of Advanced Automotive Technology (AAT) products in India. The incentive structure is to encourage industry to make fresh investments for indigenous manufacturing of AAT products and create additional jobs https://sbi.com.in/.
The Ministry had notified the categories of 19 AAT vehicles and 103 AAT components that shall be covered under the scheme https://www.nseindia.com/.
Further, to promote the Make in India campaign and boost domestic manufacturing of advanced automotive products, scheme applicants must achieve a DVA of 50% to be eligible for incentives. This criterion aims to reduce imports and simultaneous creation of domestic as well as global supply chain https://www.bseindia.com/.
The PLI-Auto Scheme guidelines and SOPs are also framed with wide stakeholder consultations. To standardized the process of calculating DVA, testing agencies collectively has come up with a Standard Operating Procedure (SOP) which specify the process to be followed. This SOP is to provide a greater level of assurance to all the stakeholders. Fiinews.com
