The program attracted a proposed investment of ₹74,850 crore versus the target estimate of 42,500 crore over five years
The program attracted a proposed investment of ₹74,850 crore versus the target estimate of 42,500 crore over five years
The government announced on Tuesday that it has approved applications from 75 companies, including Maruti Suzuki, Hero MotoCorp, Bosch, Hero Cycles, Minda Corporation and Toyota Kirloskar Auto Parts, under the Component Champion Incentive Scheme, part of the Production Linked Incentive’s (PLI) scheme for the automotive industry.
The PLI program for the automotive and auto component industry, with a budget of ₹25,938 crore, consists of two components – the Champion OEM Incentive program and the Component Champion Incentive program. The government last month announced the approval of applications from 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 successfully attracted proposed investment of 74,850 crore versus the target estimate of 42,500 crore over a five year period,” the government said in a statement.
It added that of the total proposed investment, an investment of ₹45,016 crore came from approved applicants under the Champion OEM Incentive Scheme and 29,834 crore from approved applicants under the Component Champion Incentive Scheme.
The PLI program for the automotive sector was open to both existing automotive companies and new investors. While the Champion OEM incentive program is a sales value-based scheme applicable to battery electric vehicles and hydrogen fuel cell vehicles of all segments, the Component Champion incentive program is a sales value-based scheme applicable to Advanced Automotive Technology is components of vehicles, completely disassembled / partially disassembled kits, vehicle units of two-wheelers, three-wheelers, passenger cars, commercial vehicles and tractors
Among the 75 firms selected are two new approved non-automotive investors (component companies) including Bharat Heavy Electricals Ltd. and Ceat Ltd.
Apart from Indian business groups, the approved applicants include those from countries such as Japan, Germany, the US, the UK, the Republic of Korea, Ireland, France, Belgium, the Netherlands and Italy, the center added.
