18 ‘Champion OEM’ and 67 ‘Component Champion’ implementing PLI Auto Programme
Tata Motors and Mahindra & Mahindra have been issued Advanced Automotive Technology (AAT) and Domestic Value Addition (DVA) certificates while Rs.11,958 crore investments have been reported for the auto sector till Q2 of FY2023-24.
This update was given in year-end roundup by Ministry of Heavy Industries which expects Rs.67,690 crore investments by companies in the automobile and the automobile components sector.
It is part of the Government’s initiatives to enhance India’s manufacturing capabilities and exports, supported by Rs.25,938 crore Production-Linked Incentive (PLI) Scheme for the sector.
Standard Operating Procedure (SOP) for certification of Domestic Value Addition (DVA) has also been prepared and shared with approved PLI applicants on 27 Apr 2023, the Ministry said on 23 Dec 2023.
The PLI Scheme 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 Advanced Automotive Technology products.
The scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.
Eighteen companies under ‘Champion OEM’ category and 67 companies under ‘Component Champion’ category, approved under the Scheme, are implementing the PLI Auto Programme. Fiinews.com
