About 12 companies including BHEL and Kia Motors to be excluded from Auto PLI due to lag on investments
Subscribe to enjoy similar stories. A dozen companies including state-run Bharat Heavy Electricals Ltd (Bhel) and the Indian entity of Korean automaker Kia Motors will be excluded from the production-linked incentive (PLI) scheme for automobiles and auto components, two people aware of the matter said, since these companies have made no investments under the scheme since it was launched in 2021. Some of these companies including Kia India Pvt.
Ltd have themselves shown their intent to relinquish benefits under the scheme as their initial plans for manufacturing under the scheme have not taken concrete shape, the persons said on the condition of anonymity. While Kia was enlisted as a so-called champion OEM (original equipment manufacturer), Bhel was recognized as a component champion as a new non-automotive investor for components. "Twelve companies will be excluded from the auto PLI scheme...
that's because they have not invested as per the scheme, or in some cases, they themselves want to be excluded," one of the two people said. The companies will have to forfeit bank guarantees of ₹1-2 crore each, the people added. Queries emailed to the heavy industries ministry which operates the scheme, as well as to Bhel and Kia Motors India remained unanswered.
Names of other companies which will exit the scheme could not be ascertained. In FY24, the first year of claims, the industry had sought a mere ₹500 crore in incentives, a tepid response given that the scheme has an outlay of about ₹26,000 crore across five years. Also read | Tata, Suzuki, M&M win auto PLI bids "The lack of investments under the scheme may be due to a change in strategy or investment plans of the company," said Ashim Sharma, senior partner and business
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