new Delhi A day after the Center announced the names of the beneficiaries of the Production-Linked Incentive (PLI) scheme for auto components, Ministry of Heavy Industries Secretary Arun Goyal said it would continue to engage with stakeholders to provide further support.
In an interview with Mint, Goyal said that the project management agency engaged in PLI is preparing the approval letter.
He said that since the last six months the government is in touch with the stakeholders to prepare the PLI plan and will continue to support them for setting up the manufacturing infrastructure.
“We will be in constant touch with the industry to see how things are progressing and to ensure any support, or help, from the Ministry of Heavy Industries or any other ministry. In any case, the government and industry will work together on an ongoing basis to ensure the growth of the Indian auto industry.”
He said that the scheme seeks to encourage industry players to invest more.
On Tuesday, the government approved 75 auto component manufacturers for the PLI scheme. Maruti Suzuki, Hero MotoCorp., Bharat Forge, Sona BLW Precision Forgings, Tata Autocomp Systems, Tata Cummins, Tata Ficosa Automotive Systems, The Hi-Tech Gears, Toyota Industries Engine India, Toyota Kirloskar Auto Parts, Hero Cycles, Delphi-TVS Technologies , Mitsubishi Electric Automotive India, Motherson Sumi Systems and Motherson Sumi Wiring India were among the beneficiaries.
Goyal said 90 companies had applied for incentives to manufacture auto parts. According to the ministry, the PLI scheme for automobiles and auto components has attracted investment of 74,850 crore as against the estimate of 42,500 crore over a period of five years. While the investment commitments of 45,016 crore received for PLI scheme for automobiles, proposals received for auto parts 29,834 crores.
The ministry had approved applications from 20 automobile manufacturers, including majors Tata Motors, Suzuki Motor Gujarat, Mahindra & Mahindra, Hyundai Motor India and Kia India Pvt. Ltd., 11 February.
According to the ministry, 115 companies had applied for incentives under the Consolidated Scheme for Automobile and Auto Component Industry, which was notified on 23 September 2021. Five original equipment manufacturers had submitted applications for both the schemes.
The incentives are applicable for scheduled sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India for a period of five years with effect from 1 April 2022.
Along with the PLI scheme for autos and auto parts, the already launched PLI scheme for Advance Chemistry Cell (ACC) and Faster Adoption and Manufacturing of Electric Vehicles (FAME) is the government’s ambitious plan for energy transition and EV-based transportation. The road map is the key. System.
Goyal said FAME-II has received strong interest and demand, and is now expected to be around five times that of February. The FAME-II scheme, designed to support the electrification of shared public transport and charging infrastructure, was due to expire on March 31, but was extended for two years, until March 31, 2024, as it would allow for electric vehicles. was less than the expected consumer demand. ,
According to the government, after the incentives were extended in June 2021, strong growth has been observed in the demand for EVs and incentive disbursements.
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