PLI scheme for auto sector draws 67,690 cr investment, exceeds target; over 28,000 jobs created
In Short : The Production-Linked Incentive (PLI) scheme for the auto sector has attracted an investment of ₹67,690 crores, surpassing its target. This successful outcome signifies a robust response from the industry, contributing to economic growth and job creation with over 28,000 jobs generated.
In Detail : Soon India will be the 3rd largest economy in the world; With the highest contribution of 35% in GDP, MHI and the Automobile Industry are ready to play their role in this direction says Dr. Mahendra Nath Pandey
PLI for Auto Gains Momentum; Successful in attracting proposed investment of ₹ 67,690 crore against the target estimate of investment ₹ 42,500 crore over a period of five years
Ministry of Heavy Industries organises an Auto PLI Conclave to discuss and highlight the salient features of the PLI Scheme for Automobile and Auto Component Industry; Felicitates Aatmanirbhar Bharat Champions
Ministry of Heavy Industries( MHI) organized an Auto PLI Conclave day at Bharat Mandapam, Pragati Maidan, New Delhi, to discuss and highlight the salient features of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry. PLI is providing financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attracting investments in the automotive manufacturing value chain. Union Minister of Heavy Industries, Dr. Mahendra Nath Pandey presided over the Conclave and Minister of State for Heavy Industries and Power, Shri Krishan Pal Gurjar Secretary attend the event as the guest of honour.
Speaking on the occasion, Dr. Mahendra Nath Pandey said that the Ministry of Heavy Industries is fully committed to taking forward the resolution of Prime Minister Shri Narendra Modi for a developed India and a self-reliant India. He stated that under the leadership of Prime Minister Narendra Modi, India is today the 5th largest economy in the world and soon India will be the 3rd largest economy in the world. With the highest contribution of 35% in GDP, the Ministry of Heavy Industries and the Automobile Industry are ready to play their role in this direction. Shri Pandey mentioned that in line with the Prime Minister’s vision of making the country carbon free by 2070, MHI is committed to promoting clean and environment-friendly vehicles in the country.
In his address Shri Krishan Pal Gurjar called upon the Auto Industries leaders to make concerted efforts for making India a manufacturing hub of the world. He said the efforts of the government and the industry together will certainly realize this dream.
Shri Kamran Rizvi, Secretary, MHI said that Ministry has taken several initiatives to promote environment-friendly product manufacturing in the automotive industry, such as PLI-Auto, PLI – Advanced Chemistry Cell and FAME-2. These plans focus on developing carbon-free vehicles and creating a strong ecosystem of innovation to reduce the carbon footprint in the country.
₹ 25,938 crore Production Linked Incentive (PLI) scheme for Automobile & Auto Components (PLI-AUTO Scheme) to promote cleaner mobility and develop an ecosystem of innovation and technology, which has been launched by Ministry of Heavy Industries ( MHI), have already started giving results, as companies have commenced making investments and vehicle models are being approved for availing the scheme benefits.
Mahindra & Mahindra, Tata Motors, and Ola Electric have been early moves, and they have already received Domestic Value addition (DVA) certification from testing agencies for their 22 variants of Advanced Automotive Technology (AAT) products. Mahindra & Mahindra is the 1st company to meet the DVA criteria in Three-Wheeler category, while Tata Motors is the 1st Company to meet the DVA criteria for both Four-Wheeler and Bus categories. Ola Electric is the 1st Two-Wheeler company which has met the DVA criteria. These companies, along with IFCI Limited and Automotive Research Association of India (ARAI) were felicitated by Dr Mahendra Nath Pandey and Shri Krishan Pal Gurjar during the PLI Auto Conclave. The vehicles which have been approved under the scheme were also displayed during the event.
A total of 115 companies had filed 120 applications under this PLI scheme. Out of which, 85 applicants have been approved, comprising of 18 applicants for Champion OEM Incentive scheme and 67 applicants for Component Champion Incentive scheme. Two Auto OEM companies were approved for both parts of the scheme.
Considering the need of the Auto industry, MHI has extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year and incentive will be provided for determined sales for a total of five consecutive financial years, starting from the financial year 2023-24 to 2027-28 and disbursement of incentive will take place in the following financial year.
The scheme has been successful in attracting proposed investment of ₹ 67,690 crore against the target estimate of investment ₹ 42,500 crore over a period of five years. ₹ 13,037 crore already invested till 31/12/2023. Applicants have proposed employment generation of 1.48 lakh nos., against which 28,515 nos. of employment has already been generated till 31/12/2023.
