The government on Friday said it had approved applications from 20 companies, including Hyundai Motor India, Mahindra & Mahindra, Tata Motors and Kia India, under the production-linked incentive (PLI) scheme for the automobile industry.
“The scheme has been a huge success in terms of overwhelming response received with a proposed investment of ₹45,016 crore from approved applicants,” the Ministry of Heavy Industries said in a statement.
Other four-wheeler companies whose applications had been approved are Ashok Leyland, Eicher Motors, Ford India, PCA Automobiles India, Pinnacle Mobility Solutions, and Suzuki Motor Gujarat.
In the two-wheeler and three-wheeler segment, approved applicants include Bajaj Auto, Hero MotoCorp, Piaggio Vehicles and TVS Motor Company. Additionally, six ‘new non-automotive investor (OEM)’ have gotten approvals. These are Axis Clean Mobility, Booma Innovative Transport Solutions, Elest, Hop Electric Manufacturing, Ola Electric Technologies, and Powerhaul Vehicle, according to an official release.
A total of 115 companies had filed their application under the scheme which has a budgetary outlay of ₹25,938 crore and offers incentives of up to 18% to encourage the industry to make fresh investments in indigenous supply chain of Advanced Automotive Technology (AAT) products.
“This PLI Scheme for automotive sector [₹25,938 crore] along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) [₹10,000 crore] will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient electric vehicle (EV) based system,” the ministry said in the release.
The release added that the scheme proposed financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain. “Its prime objectives include overcoming cost disabilities, creating economies of scale, and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products,” the ministry added.