New Delhi: A total of 115 companies have submitted an application to find benefits under the production scheme related to incentives (PLI) for the car and automotive component sector, the Severe Industrial Ministry said on Monday.
This scheme is notified on September 23, 2021.
This scheme is open to receiving applications until January 9, 2022.
Incentives apply based on sales for advanced automotive technology products (vehicles and components) produced in India from April 2022 and so on for a period of five consecutive years -Turut.
“As many as 115 companies have submitted their requests under the PLI scheme,” the Ministry said in a statement.
The scheme for this sector is approved by budget expenditure of rs 25,938 crore.
It aims to improve the domestic manufacture of these products.
Furthermore, said 83 applications have been received under the component champion incentive scheme.
This is a scheme for the ‘sales value’ scheme, which applies to the component of advanced automotive technology, is fully torn down (CKD) / Semi beats (SKD) kits, aggregate vehicles from 2-wheeled vehicles, 3-wheeled vehicles, commercial vehicles, commercial vehicles and tractors.
The PLI scheme has two components – OEM champion incentive scheme and component champion incentive scheme.
OEM champion scheme (original equipment manufacturer) is a ‘sales value’ scheme, which applies to electric vehicles batteries and hydrogen fuel cell vehicles from all segments.
Under the OEM champion section (except 2W and 3W), 13 applications have been submitted, and seven under two and three wheels.
Nine has received under non-automotive non-automotive investors (OEM) companies and three under the new non-automotive investor company (component).
Commenting on Development, Automotive Components Association Manufacturers Director General Vinnie Mehta said it was an encouraging response from companies in the Indian car component industry to the PLI scheme.
“With a strong underlying factor is advanced technology, this will force Indian companies to focus more on R & D and innovation and they have to think differently.
This will change the Indian industry which has so far become ‘build to print’ for innovation.
-Shopping, “said Mehta.