New Delhi: The centre on Tuesday announced a slew of measures to make the performance linked incentive (PLI) Auto scheme more lucrative for beneficiaries. Announcing the development, Minister for Heavy Industries, Mahendra Nath Pandey said, “Changes will be made to enable quarterly disbursal of fiscal incentives, the addition of more testing agencies for faster clearances, and extending the PLI scheme benefits by a year after consultation with stakeholders.” He was speaking at a review meeting under the PLI Auto scheme which saw participation from industry representatives.
These measures are likely to help in better implementation of the 25,938 crore PLI Scheme for Automobile and Auto Component Industry. Applicants under scheme had proposed investment of INR 67,690 crore, of which INR 10,755 crore has been invested till June-end this year, an official statement said.
Also speaking at the event, Minister of State for Heavy Industry, Krishan Pal Gurjar said the auto industry contributes nearly 7% to the country’s gross domestic product (GDP). He noted that the PLI scheme will further enhance the competitiveness of the sector while creating more employment opportunities. “We want to ensure that companies that want to access Indian automobile market need to make the products in India,” Gurjar said.
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business. The Champion OEM Incentive component of this scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive component of the scheme is a ‘sales value linked’ scheme, applicable on 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, among others.
In all, 95 applicants have been approved under this PLI scheme. The ministry had approved 20 applicants (along with their 12 subsidiaries) for Champion OEM Incentive scheme. Another 75 applicants (along with their 56 subsidiaries) have been approved under the Component Champion Incentive category of the scheme. Two Auto OEM companies have been approved for both the parts of the scheme.
Bettering PLI
-Quarterly disbursal of incentives
-More testing agencies for faster clearances
– PLI scheme benefits extended by a year
