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New Delhi : A total of 115 companies have filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India notified on September 23, 2021. The scheme was open for receiving applications till 23:59:59 hours IST on January 9, 2022.
Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022, onwards for a period of 5 consecutive years.
The Government has approved the Production Linked Incentive Scheme for Automobile and Auto Components Industry in India for enhancing India’s manufacturing capabilities for Advanced Automotive Products with a budgetary outlay of Rs 25,938 crore. The Production Linked Incentive Scheme for Automobile and Auto components proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology 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 Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.
The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient, and green automotive manufacturing. The incentive structure will encourage industry to make fresh investments in indigenous supply chain/ deep localisation of AdvancedAutomotive Technology products.
The PLI Scheme for auto sector 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 to Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive schemeis a ‘sales value linked’ scheme applicable to Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles, and tractors, etc.