The government on Tuesday said it had approved applications by 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 Incentive (PLI) scheme for the automobile industry.
The PLI Scheme for the automobile and auto components industry with a budgetary outlay of ₹25,938 crore has two components – the Champion OEM incentive scheme and the Component Champion incentive scheme. The government had last month announced approvals for applications by 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… This scheme has been successful in attracting proposed investment of ₹74,850 crore against the target estimate of investment ₹42,500 crore over a period of five years,” the government said in a statement.
It added that of the total proposed investment, an investment of ₹45,016 crore is from approved applicants under the Champion OEM Incentive Scheme and ₹29,834 crore from approved applicants under the Component Champion Incentive Scheme.
“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,” Union Heavy Industries Minister Dr. Mahendra Nath Pandey said.
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 ‘sales value linked’ scheme applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments, the ‘Component Champion’ incentive scheme is a ‘sales value linked’ scheme applicable on Advanced Automotive Technology components of vehicles, completely knocked down / semi knocked down kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles and tractors
Among the 75 firms selected, two new non-automotive investor (component) companies approved include Bharat Heavy Electricals Ltd. and Ceat Ltd.
Apart from Indian business groups, approved applicants include those from countries such as Japan, Germany, the U.S., the U.K., Republic of Korea, Ireland, France, Belgium, Netherlands and Italy, the Centre added.
