Govt includes CNG, LNG, 98 other advanced tech under auto PLI scheme

The Union government has added more than 100 advanced technologies, including alternate fuel systems such as compressed natural gas (CNG),  under the production-linked incentive (PLI) scheme for the automobiles.

Bharat Stage VI compliant flex fuel engines, electronic control units (ECU) for safety, advanced driver assist system, e-quadricyle, among others will also be covered under the scheme. Till now, the government has included only two-wheelers and four-wheelers under the scheme.

The scheme aims to boost manufacturing capability of the automobile sector, including the electric and hydrogen fuel cell vehicles.

In September, the Union Cabinet had approved the scheme with an outlay of Rs 25,938 crore. The scheme aims to incentivise high-value advanced automotive technology vehicles and products such as sunroofs, adaptive frontlighting, automatic braking, tyre pressure monitoring system, and collision warning systems, among others for the auto industry.

The incentive structure aims to encourage industry to make fresh investments for indigenous global supply chains of advanced automotive technology products.

The scheme for the sector is open to existing automotive companies as well as new investors who are not in the automobile or auto component manufacturing business.

The Society of Indian Automobile Manufacturers  said it is thankful and compliments the Ministry of Heavy Industries for coming out with a structured list of PLI parts and procedural details in a very short time.“Our preliminary observation is that the list of AAT parts is broad-based and well — structured across themes,” said Rahul Bharti, chief engagement officer, Siam.

The inclusion of e-quadricyle is another highlight of the notification and set to benefit firms including Bajaj Auto, M&M. 

While Bajaj Auto sells the internal combustion en­gine powered Qute in the export markets, M&M showed the battery operated quadri at at the last auto expo but has yet to launch it commercially.

Till now the government has included only two wheelers and four wheelers under the scheme.