new Delhi: 75 companies including Maruti Suzuki, Hero MotoCorp and Toyota Kirloskar Auto Parts have been approved for incentives under the Production Linked Incentive (PLI) scheme introduced for the vehicle and vehicle component manufacturing sectors.
An investment of Rs 29,834 crore is expected from 75 approved applicants under the Equipment Champion Incentive Scheme, a statement issued by the government said on Tuesday. Earlier, 20 applicants were selected by the Ministry of Heavy Industries under the Champion OEM Promotion Scheme. Both these vehicle equipment incentive schemes are part of the PLI initiative.
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Under the PLI scheme, an incentive of 18 per cent is provided to the auto component industry for making fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products. According to an official statement, the PLI scheme launched for the auto and auto parts industry has been successful in attracting a proposed investment of Rs 74,850 crore against the target of Rs 42,500 crore investment over five years. The government has received investment proposals from applicants worth Rs 45,016 crore under Champion OEM Incentive Scheme and Rs 29,834 crore under Components Champion Incentive Scheme.
Two non-vehicle investor (part) companies are also included in the companies selected under the PLI scheme. These companies are Bharat Heavy Electricals Limited (BHEL) and CEAT Limited. Apart from India, companies from Japan, Germany, USA, UK, South Korea, Ireland, France, Belgium, Netherlands and Italy are also included in the approved companies for this incentive scheme.
Heavy Industries Minister Mahendra Nath Pandey said, “The overwhelming support for this scheme shows that the industry has reposed their confidence in India’s phenomenal progress as a world-class manufacturing destination. This matches the Prime Minister’s call to build a self-reliant India.”
The PLI scheme for the auto sector was open to new investors besides existing auto companies. The Champion OEM scheme is dedicated to battery powered vehicles and hydrogen fueled vehicles. The Equipment Champion scheme is meant for advanced automotive equipment. (agency)