NEW DELHI : A day after the Centre announced the names of beneficiaries of the production-linked incentive (PLI) scheme for auto components, Arun Goel, secretary, ministry of heavy industries, said it will continue to engage with stakeholders to provide further support.
In an interview with Mint, Goel said the project management agency engaged in the PLI is preparing the letters of approval.
For the past six months, the government was in touch with stakeholders in framing the PLI scheme and will continue to support them to set up the manufacturing infrastructure, he added.
“We will be in constant touch with the industry to see how things are progressing and to ensure any kind of support, or help, from the heavy industries ministry or any other ministry. In any case, the government and the industry will work together on a continuing basis to ensure that the Indian auto industry grows," he said.
The scheme seeks to encourage industry players to invest more, he added.
On Tuesday, the government approved 75 auto component manufacturers for the PLI scheme. Maruti Suzuki, Hero MotoCorp., Bharat Forge, Sona BLW Precision Forgings, Tata Autocomp Systems, Tata Cummins, Tata Ficosa Automotive Systems, The Hi-Tech Gears, Toyota Industries Engine India, Toyota Kirloskar Auto Parts, Hero Cycles, Delphi-TVS Technologies, Mitsubishi Electric Automotive India, Motherson Sumi Systems and Motherson Sumi Wiring India were among the beneficiaries.
Goel said 90 companies had applied for the incentives to manufacture auto components. According to the ministry, the PLI scheme for automobile and auto components has attracted a proposed investment of ₹74,850 crore against the estimates of ₹42,500 crore over a five-year period. While investment commitments of ₹45,016 crore were received for the PLI scheme for automobiles, auto parts received proposals for ₹29,834 crore.
The ministry had approved applications of 20 automobile manufacturers, including majors Tata Motors, Suzuki Motor Gujarat, Mahindra and Mahindra, Hyundai Motor India and Kia India Pvt. Ltd, on 11 February.
According to the ministry, 115 companies had applied for incentives under the consolidated scheme for automobile and auto component industry, which was notified on 23 September 2021. Five original equipment manufacturers had submitted applications for both schemes.
Incentives are applicable for determined sales of advanced automotive technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 for a period of five years.
The PLI scheme for auto and auto parts, along with the already launched PLI scheme for advanced chemistry cell (ACC) and Faster Adoption and Manufacturing of Electric Vehicles (FAME) are key to the government’s ambitious road map for energy transition and EV-based transportation system.
FAME-II has received robust interest and demand, and is now expected to be around five times that of February, Goel said. The FAME-II scheme, designed to support electrification of shared public transportation and charging infrastructure, was scheduled to end on 31 March, but has been extended by two years till 31 March, 2024, as it fell short of the expected consumer demand for EVs.
According to the government, after the incentives were extended in June 2021, it has seen robust growth in EV demand and incentive disbursement.
