New Delhi, Feb 11 (SocialNews.XYZ) The Central government on Friday selected 20 companies such as Tata Motors, Suzuki Motor Gujarat, Hyundai Motor India, Mahindra & Mahindra amongst others to become a part of 'Production Linked Incentive' (PLI) scheme for automobile and auto components.
Last year, the Centre had approved the PLI scheme for enhancing the country's manufacturing capabilities for 'Advanced Automotive Technology' (AAT) products with a budgetary outlay of Rs 25,938 crore.
The AATs based vehicles include types that are capable of running on hydrogen and electricity.
Accordingly, the scheme proposes financial incentives to boost domestic manufacturing of 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.
"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," said the Ministry of Heavy Industries in a statement.
"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 5 consecutive years."
According to the statement, the ministry processed the applications received under 'Champion OEM Incentive' scheme and 20 applicants have been approved under this category of the scheme.
"Applications for Component Champion Incentive scheme are being processed separately."
The scheme was open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business. It has two components viz 'Champion OEM Incentive Scheme' and 'Component Champion Incentive Scheme'.
The Champion OEM Incentive scheme is a 'sales value linked' scheme, applicable on 'Battery Electric Vehicles' and 'Hydrogen Fuel Cell Vehicles' of all segments.
"The PLI scheme for 'Automobile and Auto Component Industry' has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in or proposing to manufacture 'Advanced Automotive Technology' vehicles or products," the ministry said.
"Apart from Indian business groups, approved applicants for 'Champion OEM' Incentive scheme include groups from countries such as Republic of Korea, USA, Japan, France, Italy, UK and Netherlands."
Notably, Ford India was also selected to manufacture AAT products. On its part, the company which had announced closure of its India operations last year said it would look at catering to the global market using one of its factories in the country.
"We thank the government of India for approving Ford's proposal under the Production-Linked Incentive (PLI) scheme for the automobile sector," said Ford India Spokesperson in a statement.
"As Ford leads customers through the global electric-vehicle revolution, we're exploring the possibility of using a plant in India as an export base for EV manufacturing."
Besides, Tata Motors in a statement said: "We are committed to shape India's vehicular landscape with smart and sustainable mobility solutions powered by new age technologies to address the evolving needs of both personal and commercial mobility and this opportunity will help us drive this with even greater vigour."
Source: IANS
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