The INR 25,938 crore Production Linked Incentive (PLI) plan for the automobile industry and Auto Components (PLI-AUTO plan) is managed by the Ministry of Heavy Industries. According to an official statement, the results are seen as businesses have started investing and car models are being accepted to receive benefits under the system.
According to Heavy Industries Minister Mahendra Nath Pandey on Tuesday, the Indian automobile industry will impact the nation’s ascent to the third rank in the world economy. During an address at the auto Production Linked Incentive (PLI) summit in New Delhi, he said, “India is currently the fifth largest economy in the world and India’s economy will rank third globally very soon.”The automotive industry, which contributes the most to GDP at 35%, is prepared to play a part in this direction.”
The INR 25,938 crore Production Linked Incentive (PLI) plan for the automobile industry and Auto Components (PLI-AUTO plan) is managed by the Ministry of Heavy Industries. According to an official statement, as businesses start investing and as car models are approved to receive plan benefits, results are starting to appear.
This initiative has been successful in drawing INR 67,690 crore in anticipated investment, of which INR 13,037 crore has been made as of December 31, 2023. To determine if any new auto parts in the Three-Wheeler category need to be supported under the current PLI standards, a committee has also been established.
The first company to satisfy the DVA requirements for both the bus and four-wheeler categories is Tata Motors. The first two-wheeler company to meet the DVA requirements is Ola Electric.
Under this PLI initiative, 115 companies have submitted 120 applications in total. Eighty-five of them—sixty-seven for the Component Champion Incentive scheme and eighty-seven for the Champion OEM incentive scheme—have been authorized. For both components of the program, two auto OEM businesses were accepted.