Maruti, TVS, Hero MotoCorp Among 75 to Get SOP for Auto PLI Scheme

Synopsis – By offering this incentive scheme the Government is aiming to reduce the dependency of the Indian auto industry on foreign-based companies. Thus, boosting the country’s manufacturing sector, as will also help in increasing the automotive supply chain within the country.

The Government on Tuesday, announced Hero MotoCorp, TVS, Maruti, Tata Cummins, Toyota Kirloskar Auto have been put among 75 firms, which have been approved for receiving incentives under the production-linked incentive (PLI) scheme for the auto components sector and automobiles. The proposed investment for around Rs 29,834 crore is expected from the approved 75 applicants which come under Component Champion Incentive Scheme. 

Twenty applicants were earlier selected by the Ministry of Heavy Industries under Champion OEM Incentive Scheme, under which there are two schemes, one offers an incentive of 18% in order to encourage the industry for making a fresh investment in the supply chain of Advanced Automotive Technology (AAT) products. The incentives will be given by the Ministry of Heavy Industries hence, boosting the level of employment in the country.

In an official statement, it has been said, 

“The PLI Scheme for Automobile and Auto Component Industry in India has been successful in attracting proposed investment of Rs 74,850 crore against the target estimate of investment Rs 42,500 crore over a period of five years. “The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive Scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive Scheme.” 

Besides this, it is also confirmed that apart from Indian business groups there are several foreign applicants which have been approved, including, Italy, Germany, Japan, South Korea, US, UK, France, Netherlands, Belgium, and Ireland. 

By offering this incentive scheme the Government is aiming to reduce the dependency of the Indian auto industry on foreign-based companies. Thus, boosting the country’s manufacturing sector, as will also help in increasing the automotive supply chain within the country. Regarding the scheme, Heavy Industries Minister Mahendra Nath Pandey said, 

“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India.” India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.” 

In order to thank the Government for their initiative, ACMA President Sunjay J Kapur said in a statement, 

“Today’s announcement has indeed enthused the entire auto components industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry or its generous selection of companies that will benefit from the scheme.”

According to him this scheme is very useful and will create new parameters from technological development in India thus making the country globally competitive along with providing momentum to the ‘Make In India Movement’.