NEW DELHI : Atotal of 115 companies from the automobile and auto component industry have applied for benefits under the production-linked incentive (PLI) scheme notified on 23 September, the ministry of heavy industries said in a statement on Monday. The application window for automobile component manufacturers closed on 9 January.

The Centre seeks to boost India’s manufacturing capabilities for advanced automotive technology (AAT) products with a budgetary outlay of ₹25,938 crore, and attract investments in the automotive manufacturing value chain.

Incentives will be offered for AAT products for vehicles and components manufactured in India from 1 April 2022 for a period of five years.

Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain for AAT products, and generating employment.

This scheme will help the automobile industry to move up the global value chain and will herald a new age in higher technology, and more efficient and green automotive manufacturing, the ministry said. The incentive structure is expected to encourage manufacturers to make fresh investments in indigenous supply chains and deep localization of AAT products, it added.

Both existing companies and new investors for automobile or auto component manufacturing were eligible. The initiative has been a success in terms of applications received from local as well as globally-headquartered groups engaged in and proposing to manufacture AAT vehicles and products, it said.