Proposed investments under PLI scheme in automobile sector overshoot target estimate

New Delhi [India], December 29 (ANI): The Production-Linked Incentive scheme for automobile and auto components has managed to attract a proposed investment of worth Rs 67,690 crore against the target estimate of investment of Rs 42,500 crore, over a period of five years.

A total of 115 companies had filed their application under the PLI scheme. The scheme and its guidelines were notified on September 23, 2021. Out of 115, total of 85 applicants have been approved – 18 applicants for the champion original equipment manufacturing Incentive scheme and 67 applicants under the Component Champion Incentive scheme. Two auto OEM companies have been approved for both the part of the scheme, the Ministry of Heavy Industries said in its year-ender overview statement on Thursday.

Apart from Indian business groups, approved applicants under the PLI scheme include groups from countries such as the Republic of Korea, the US, Japan, France, Italy, the UK, and the Netherlands.

“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister’s clarion call of Atma Nirbhar Bharat – a self-reliant India,” the ministry said.

As part of its Atmanirbhar plan, the Government launched Production Linked Incentive (PLI) schemes in varied sectors to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports.