Automobile PLI scheme: The Central Government has approved the applications of 20 companies under the Production Linked Incentive (PLI) scheme of the automobile industry. The names of these companies include Tata Motors, Suzuki Motor Gujarat, Mahindra & Mahindra, Hyundai and Kia India Pvt. Ashok Leyland, Eicher Motors Ltd., PCA Automobiles India and Pinnacle Mobility Solutions are among other selected companies in the four-wheeler segment.
The Ministry of Heavy Industries said in a statement issued on Friday that the Automobile PLI scheme can be considered successful as the government has received an overwhelming response to it. We have received investment proposals of Rs 45,016 crore from companies whose applications have been accepted under the Automobile PLI Scheme.
Successful applicants in the two-wheeler and three-wheeler categories include Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor.
In the ‘New Non-Automotive Investor’ category, applications from Ola Electric Technologies, Axis Clean Mobility, Booma Innovative Transport Solutions, Elest Pvt Ltd, Hop Electric Manufacturing Pvt Ltd and Powerhall Vehicles Pvt Ltd have been approved.
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Under the Automobile PLI Scheme, an incentive of up to 18% is to be given to encourage the industry to make fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products.
According to the government, under the PLI schemes, an incentive of Rs 25,938 crore is to be given to the automobile and auto components industry, 18,100 crore to the industry of Advanced Chemistry Cell. Together, an investment of Rs 10,000 crore will be made under the FAME scheme, to develop an eco-friendly, sustainable, modern and more efficient electric vehicle based ecosystem in India.
A total of 115 companies had applied for incentives under this scheme. The government had issued the notification of the PLI scheme on 23 September 2021. Under the Automobile PLI scheme, the incentive amount will be given over the next 5 years from April 1, 2022.
The PLI scheme for the automobile industry was open to existing automotive companies as well as new investors who are not currently in the business of manufacturing automobiles or auto components.
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