Automotive sector, ACC and FAME to enable India to make more efficient EVs
A total of 115 companies have filed their application under the Rs.25,938 crore Production Linked Incentive (PLI) Scheme which will incentivize high value Advanced Automotive Technology vehicles and products manufacturing in India.
The scheme will herald a new age in higher technology, more efficient and green automotive manufacturing, the Ministry of Heavy Industry said on 10 Jan 2022.
The PLI Scheme for the auto sector envisages to overcome the cost disabilities to the industry for manufacturing of Advanced Automotive Technology products in India.
The incentive structure will encourage industry to make fresh investments in indigenous supply chain and deep localization of Advanced Automotive Technology products for Automobile and Auto Component Industry in India
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 scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD) and Semi Knocked Down (SKD) kits as well as Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors, etc.
The PLI Scheme for automotive sector (Rs.25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (Rs.18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs.10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EVs) based system.
The PLI scheme for Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups proposing to manufacture Advanced Automotive Technology vehicles and products.
The scheme, notified on 23 Sept 2021, was open for applications till 23:59:59 hours IST on 9 January 2022.
Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of 5 consecutive years.
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. fiinews.com
