The production-linked incentive (PLI) scheme for the automobile sector is expected to create at least 7.5 lakh jobs in the country, the ministry of Heavy Industries Secretary Arun Goel told news agency ANI.
Earlier today, the government has selected 20 applicants including Ford Motor, Hyundai India, Tata Motors among others for incentives under auto PLI scheme.
The scheme has been a huge success in terms of overwhelming response received with a proposed investment of ₹ 45,016 cr from approved applicants, the ministry of heavy industries said in a statement.
Under the scheme, incentive upto 18% will be granted to encourage industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products of PLI Scheme for automotive sector.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry which was notified in September last year.
The objectives of the scheme include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products, apart from generating employment
We had opened the application window of 60 days, which closed on 9 January this year and received a total of 115 applications, including 87 under the auto component category and 38 under the OEM vehicle category. Five applicants applied in both categories, the secretary said.
As regards the 92 applications of auto components, they are in the process and will take three to four weeks more time. However, on the OEM category, the 28 applications have been processed and we have declared 20 applicants eligible, he said.
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