115 companies filed their application under PLI Scheme for Auto Component Industry

Government has approved the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry in India for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs 25,938 crore.

115 companies filed their application under PLI Scheme for Auto Component Industry
Representational Image/Reuters

New Delhi: A total of 115 companies have filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23rd September 2021. The scheme was open for receiving applications till 23:59:59 hours IST on 9th January 2022. Incentives are applicable under the scheme for determining sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 onwards for a period of 5 consecutive years.

The Government has approved the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry in India for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs 25,938 crore. The Production Linked Incentive (PLI) Scheme for Automobile and Auto components proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.

Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.