Proposed investments under PLI scheme for auto sector surpasses targets

30 Dec 2022 , 12:53 PM

The Production-Linked Incentive Scheme for Automobiles and Auto Components has attracted a proposed investment of Rs67,690 crore over a five-year period, exceeding the target estimate of Rs42,500 crore.

The PLI scheme had received applications from 115 companies. On September 23, 2021, the scheme and its guidelines were made public.

A total of 85 applicants were approved out of 115 – 18 for the Champion Original Equipment Manufacturing Incentive scheme and 67 for the Component Champion Incentive scheme. 

According to the Ministry of Heavy Industries’ year-end overview statement, two auto OEM companies have been approved for both parts of the scheme.

Apart from Indian business groups, approved applicants under the PLI scheme include groups from the Republic of Korea, the United States, Japan, France, Italy, the United Kingdom, and the Netherlands.

The government launched Production Linked Incentive (PLI) schemes in various sectors as part of its Atmanirbhar plan to make Indian manufacturers globally competitive, attract investments, boost exports, integrate India into the global supply chain, and reduce reliance on imports.

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