 "Automobile and Electronic Companies look at Coimbatore for Manufacturing")
The Centre on Tuesday announced quarterly disbursement of incentives and a one-year deadline extension for the beneficiaries of a Rs 25,938 crore production-linked incentive scheme for the Automobile and Auto Component Industry (PLI-Auto).
The announcement was made by Union Minister for Heavy Industries Mahendra Nath Pandey during a review meeting of the PLI-Auto scheme.
"As the aim of the scheme is to support the automotive industry, we are working on providing quarterly payments and a one-year deadline extension to all beneficiaries," said Pandey.
Business Standard first reported on the quarterly payments on June 11 and August 23, respectively.
Incentives are awarded to original equipment manufacturers (OEMs) based on the determined sales value of advanced automotive technology (AAT) products — both vehicles and components — manufactured in India from April 1, 2022, provided they meet the minimum 50 per cent domestic value addition (DVA) criterion.
Pandey also announced the empanelment of the Global Automotive Research Centre and National Automotive Test Tracks (NATRAX) as certifiers for DVA certification. Currently, only the Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (iCAT) are responsible for certification.
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Thus far, two OEMs, M&M and Tata Motors, have received DVA certificates.
The ministry announced it has received 23 applications from five players: Mahindra & Mahindra (M&M), Tata Motors, Ola Electric, Ashok Leyland, and Toyota Kirloskar Auto Parts. Furthermore, another 37 applicants are expected to apply for DVA certification during this financial year, the minister said, as first reported by Business Standard on August 23.
Operational since April 2022 for a duration of five years, the scheme has approved a total of 20 applicants under the Champion OEM category and 75 under the Champion Component scheme. The scheme aims to bolster domestic manufacturing of automobiles and auto components in India. It is expected to create jobs, attract investments and enhance the global competitiveness of the automotive industry.
