NEW DELHI: The Centre has approved 20 companies including Tata Motors, Suzuki Motor Gujarat, Mahindra & Mahindra, Hyundai, and Kia India Pvt, under the Production Linked Incentive (PLI) scheme for the automobile industry.
Others approved in the four-wheeler segment include Ashok Leyland, Eicher Motors Ltd, PCA Automobiles India, Pinnacle Mobility Solutions.
The ministry of heavy ndustries in a statement said that the automobile PLI scheme has been a huge success in terms of response received, with the government getting investment proposals worth ₹45,016 crore from approved applicants.
Bajaj Auto, Hero MotoCorp, Piaggio Vehicles, and TVS Motor Company are among the successful applicants in the two- and three-wheeler segments.
Under the category of ‘new non-automotive investor’, applicants selected include Ola Electric Technologies, Axis Clean Mobility, Booma Innovative Transport Solutions, Elest Pvt Ltd, Hop Electric Manufacturing Pvt Ltd, and Powerhaul Vehicle Pvt Ltd.
Under the scheme, incentive of up to 18% will be given to encourage the industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products.
According to the government, the PLI scheme for automobile and auto components worth ₹25,938 crore and PLI for Advanced Chemistry Cell ( ₹18,100 crore) along with the FAME Scheme ( ₹10,000 crore) will help India transition to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EVs)-based ecosystem.
A total of 115 companies had applied for incentives under the scheme, which was notified on 23 September 2021. Incentives under the Automotive PLI Scheme will be rolled out from 1 April, 2022 for a period of five years.
The PLI scheme for the automobile industry was open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business.
Never miss a story! Stay connected and informed with Mint.
our App Now!!