Centre tweaks PLI auto scheme to better support beneficiaries

economictimes.indiatimes.com:

Heavy Industries, Mahendra Nath Pandey said, “Changes will be made to enable quarterly disbursal of fiscal incentives, addition of more testing agencies for faster clearances, and extending the PLI scheme benefits by a year after consultation with stakeholders.” He was speaking at review meeting under PLI Auto scheme which saw participation from industry representatives.

ET had reported earlier this week that the PLI scheme may be extended by a year.

These measures are likely to help in better implementation of the 25,938 crore PLI Scheme for Automobile and Auto Component Industry. Applicants under scheme had proposed investment of Rs 67,690 crore, of which Rs.10,755 crore has been invested till June-end this year, an official statement said.

Also speaking at the event, Minister of State for Heavy Industry, Krishan Pal Gurjar said the auto industry contributes nearly 7% to the country’s gross domestic product (GDP).

He noted that the PLI scheme will further enhance the competitiveness of the sector while creating more employment opportunities. “We want to ensure that companies that want to access Indian automobile market need to make the products in India,” Gurjar said.
The PLI Scheme for auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business.

The Champion OEM Incentive component of this scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive component of the scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down