The scheme 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, a senior official from the Ministry of Heavy Industries told ET.
“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,” the official added.
Bharat Heavy Electricals and Ceat are the two new non-automotive investor (component) companies that have got an approval under the scheme.
It was reported in January this year that 115 companies had applied for the Rs 25,938 crore Production Linked Incentive (PLI) scheme for the automotive and the auto component sector notified by the government in September last year. Of the applicants, 13 were original equipment manufacturers (with the exception of 2W and 3W), 7 are 2W & 3W OEMs, 83 were component companies, 9 were new non-automotive (OEM) investor companies and 3 were new non-automotive (component) investor companies.
“The PLI Scheme for the auto sector envisages to overcome the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. Further this will increase India’s share in global automotive trade,” an official statement issued when the PLI scheme was approved had said.
The PLI Scheme for Auto sector was open to existing automotive companies as well as new Non-automotive investor companies (who are currently not in automobile or auto component manufacturing business). The scheme will be implemented over a period of five years starting from financial year 2022-2023. An approved applicant is eligible for benefits for five consecutive Financial Years.
Financial Year 2019-2020 was treated as the Base Year for calculation of eligible sales.
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