20 Champion OEMs of the 115 companies that filed under the PLI scheme have got their approval. Ashish Bhatia shares the details of companies that cut above the rest.

The Production Linked Incentive (PLI) scheme had 115 companies filing applications to avail incentives under the scheme with an Rs.25,938 crore outlay. This was till the set deadline on January 09, 2022. The companies had applied to be eligible for incentives applicable under the scheme for the determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 01, 2022, onwards for the next five years. On processing the applications, it is learnt, the Ministry of Heavy Industries (MHI) processed the applications. 20 applicants (along with their 12 subsidiaries) have been approved under the Champion OEM Incentive scheme. Applications for the Component Champion Incentive scheme are being processed separately and will be notified soon.

The PLI scheme for the Automobile and Auto Component Industry has been hailed as a huge success. Apart from Indian business groups, approved applicants for the Champion OEM Incentive scheme include groups from countries such as the Republic of Korea, USA, Japan, France, Italy, UK and Netherlands. On hearing the news, industry reactions started to pour in. Tata Motors’ spokesperson expressed delight in availing the opportunity. He said, “Tata Motors is delighted with the opportunity provided to participate in the progressive and transformational Auto sector PLI scheme that aims to drive self-sufficiency and world-class competitiveness through the ‘Aatmanirbhar Bharat’ initiative. We are committed to shaping India’s vehicular landscape with smart and sustainable mobility solutions powered by new-age technologies to address the evolving needs of both personal and commercial mobility and this opportunity will help us drive this with even greater vigour.” “The policy push with the right levers of PLI scheme is likely to further spur the development of the entire EV ecosystem in the country,” opined Harsha Kadam, Managing Director & CEO, Schaeffler India Ltd.

According to Sudhir Mehta, Chairman and Managing Director at Pinnacle Industries Ltd., in less than 10 years, India could be the largest EV and Hydrogen vehicles producer in the world, in numbers. “The infection point is coming. This will become the single largest manufacturing industry in the country,” he expressed. Opining that the EV adaption of commercial vehicles including buses will be driven by the Total Cost of Ownership (TCO), Mehta expects it to become more favourable with a higher daily run, especially for inter-city buses. As a derivative of improving the availability of charging infrastructure and product availability, sales will explode, he stated. Citing the PLI approval as a game-changer, for the entire sustainability mobility ecosystem, Mehta expects the development-focused initiatives to ensure an ecosystem of local manufacturing for advanced and green technologies at global scales. It could filter down the entire value chain, and boost the MSME sector, he mentioned.

The Government approved the PLI scheme for the Automobile and Auto Component Industry in India for Enhancing India’s Manufacturing Capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs.25,938 crores. The PLI Scheme for the Automobile and Auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) 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 AAT products. The scheme is expected to aid the CV industry, in moving up the value chain into higher value-added products.

Also read, Thumbs Up to Mission Possible