Maruti among 75 firms to get auto PLI benefits
NEW DELHI: Maruti Suzuki, Hero MotoCorp, Lucas-TVS, Tata Cummins, and Toyota Kirloskar Auto Parts are among the 75 firms that will receive incentives under the production linked incentive (PLI) scheme for the automobile and auto components sector, the government said on Tuesday.
A proposed investment of ₹29,834 crore is expected from the 75 approved applicants under the Component Champion Incentive Scheme. The ministry of heavy industries had earlier selected 20 applicants under the Champion OEM Incentive Scheme. The two components are part of the PLI scheme.
The scheme offers incentive of up to 18% to encourage industry to make fresh investments in indigenous supply chain of advanced automotive technology (AAT) products.
“The PLI Scheme for the automobile and auto component industry in India has been successful in attracting proposed investment of ₹74,850 crore against the target estimate of investment ₹42,500 crore over five years. The proposed investment of ₹45,016 crore is from approved applicants under Champion OEM Incentive Scheme and ₹29,834 crore from approved applicants under Comdey. ponent Champion Incentive Scheme,” the government said.
Two new non-automotive investor (component) companies approved among the 75 firms selected are Bharat Heavy Electricals Limited (BHEL) and Ceat Limited.
Apart from Indian business groups, approved applicants include those from countries such as Japan, Germany, the US, the UK, Republic of Korea, Ireland, France, Belgium, Netherlands, and Italy, it said.
“The overwhelming response shows that industry has reposed faith in India’s stellar progress as a world class manufacturing destination, which resonates strongly with Prime Minister Narendra Modi’s clarion call of Atmanirbhar Bharat, a self-reliant India,” said heavy industries minister Mahendra Nath Pan“India will take a huge leap towards cleaner, sustainable, advanced and more efficient electric vehicle (EV)-based system,” he said.
The PLI scheme for the auto sector was open to existing automotive companies and new investors who are at present not in the automobile or auto component manufacturing business.
The Champion OEM Incentive scheme is ‘sales value linked’ and is applicable on battery electric vehicles and hydrogen fuel cell vehicles of all segments.
The Component Champion Incentive scheme is ‘sales value linked’ and is applicable on segments such as AAT components of vehicles, completely knocked down and semi knocked down kits, vehicle aggregates of twowheelers, three-wheelers, and passenger vehicles.