The scheme attracted a proposed investment of ₹74,850 crore against the target estimate of ₹42,500 crore over five years
The scheme attracted a proposed investment of ₹74,850 crore against the target estimate of ₹42,500 crore over five years
The government on Tuesday said it has cleared applications of 75 companies, including Maruti Suzuki, Hero MotoCorp, Bosch, Hero Cycles, Minda Corporation and Toyota Kirloskar Auto Parts, under the ‘Component Champion Incentive Scheme’, which is part of the production linked incentives. Is. (PLI) Scheme for the Automobile Industry.
The PLI scheme with a budgetary outlay of Rs 25,938 crore for the Automobile and Auto Component Industry has two components – Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The government had last month announced to approve applications of 20 companies, including Hyundai Motor India, Mahindra & Mahindra, Tata Motors and Kia India, for the Champion OEM incentive scheme.
“A total of 95 applicants have been approved under this PLI scheme. The scheme has been successful in attracting a proposed investment of Rs 74,850 crore against the target estimate of investment,” the government said in a statement. ,
It said that out of the total proposed investment, investment of Rs 45,016 crore is from applicants approved under Champion OEM incentive scheme and Rs 29,834 crore from applicants approved under Component Champion incentive scheme.
“The overwhelming response shows that the industry has expressed its confidence in India’s spectacular progress as a world class manufacturing destination, which resonates strongly with the Prime Minister’s call for self-reliant India – self-reliant India. India will definitely take a big leap towards a cleaner, sustainable, advanced and more efficient Electric Vehicle (EV) based system,” said Dr. Mahendra Nath Pandey, Union Minister for Heavy Industries.
The PLI scheme for the auto sector was open to existing automotive companies as well as new investors. While the ‘Champion OEM’ incentive scheme is a ‘sale price linked’ scheme applicable to all segments of battery electric vehicles and hydrogen fuel cell vehicles, the ‘Component Champion’ incentive scheme is a ‘sale price linked’ scheme Applies to automotive technology. Vehicle Parts, Completely Knock Down / Semi Knock Down Kits, Vehicle Assemblies of Two Wheelers, Three Wheelers, Passenger Vehicles, Commercial Vehicles and Tractors
Out of the selected 75 firms, two new non-automotive investor (constituent) companies have been approved, namely Bharat Heavy Electricals Limited and CEAT Limited.
The Center said that apart from Indian business groups, the accepted applicants include people from countries like Japan, Germany, US, UK, Republic of Korea, Ireland, France, Belgium, Netherlands and Italy.