 "Tata Motors, M&M to get incentives worth Rs 246 crore under PLI scheme")
Tata Motors and Mahindra & Mahindra (M&M) have claimed around Rs 246 crore as production-linked incentives (PLIs) for incremental production, Heavy Industries Minister H D Kumaraswamy said on Thursday.
These claims have been made under the PLI scheme to boost the automobile and auto components industry. The budgetary allocation for this scheme is Rs 25,938 crore.
The PLI-Auto scheme aims to enhance India's manufacturing capabilities in Advanced Automotive Technology (AAT) products, address cost disabilities, and establish a robust supply chain.
Incentives under the PLI scheme are offered, ranging from 13 per cent to 18 per cent, for components related to electric vehicles (EVs) and hydrogen fuel cells. Other AAT components receive incentives between 8 per cent and 13 per cent.
Kumaraswamy said that applicants under the scheme have begun reaping its benefits, successfully achieving the required 50 per cent domestic value addition.
“Mahindra & Mahindra Limited has submitted an incentive claim of Rs 104.08 crore based on determined incremental sales of AAT products, totalling Rs 800.59 crore for 2023-24, with a cumulative investment of Rs 978.30 crore. The eligible sales from its e3W models — including Treo, Treo Zor, and Zor Grand — amount to Rs 836.02 crore, supported by a certificate of DVA issued by the Automotive Research Association of India (ARAI),” he said.
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Tata Motors Limited has submitted an incentive claim of approximately Rs 142.13 crore for determined sales in 2023-24.
The eligible sales of AAT products from Tata Motors include the Tiago EV (an electric four-wheeler), Starbus EV (an electric bus model), and Ace EV (an electric cargo vehicle), totalling Rs 1,380.24 crore.
The total claims from these two applicants amount to approximately Rs 246 crore, which have been examined and recommended by the Project Management Agency (PMA) and subsequently approved by the Ministry of Heavy Industries.
“As of September 2024, the PLI scheme has already facilitated an investment of Rs 20,715 crore, leading to incremental sales of Rs 10,472 crore. The first incentive disbursement is anticipated in the financial year 2024-25,” the statement said.
Approved on September 15, 2021, the scheme is designed to operate from financial year 2023-24 to 2027-28, with incentive disbursements scheduled from 2024-25 to 2028-29.