The government's Production-Linked Incentive (PLI) programme for autos and their components was approved by the Heavy Industries Ministry on Tuesday. According to a list released by the ministry, Maruti Suzuki, Hero MotoCorp, Motherson Sumi, Bharat Forge, Bosch, Toyota, Hero Cycles, Varroc, Lucas TVS, Lumax, Sona BLW, Mitsubishi, Nidek, Schaeffler, Garrett, Pinnacle, and Mando are among the 75 firms that have been authorised for the Component Champion Incentive scheme.
Under the Component Champion scheme, qualified applicants are expected to invest Rs 29,834 crore. Previously, the original equipment manufacturer (OEM) incentive plan had authorised up to 20 applicants. The component PLI scheme has been approved for companies from Japan, Germany, the United States, the United Kingdom, the Republic of Korea, Ireland, France, Belgium, the Netherlands, and Italy. The component PLI scheme had received more than 100 applications.
Five automakers had submitted applications for both parts of the programme. The auto PLI plan has already generated a proposed investment of Rs 74,850 crore for a five-year term, against a target of Rs 42,500 crore.
Under the proposal, enterprises who make components for safety, flex fuels, CNG, LNG, emission control, passenger convenience, fuel efficiency, and sensors will receive incentives ranging from 8% to 13%. Companies that manufacture components for hydrogen and electric vehicles will receive 13-18% incentives. The NDA government announced last month that it expects 20 businesses to spend Rs 45,000 crore in India's automobile industry over the next five years under the PLI plan.
What is PLI Scheme?
The Production Linked Incentive Scheme, or PLI Scheme, is a government of India effort that aims to encourage not only foreign corporations to locate workers in India and so create jobs, but also domestic and local production to create micro-jobs.