Incentives under the scheme are applicable to determine sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India with effect from April 1, 2022, the ministry said in a statement.
The Ministry of Heavy Industries announced that a total of 115 automobile and automobile-related subsidiaries have applied for the Production Linked Incentive (PLI) scheme in India. The scheme was open for receiving applications till midnight of January 9, 2022. Incentives under the scheme are applicable to determine sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India with effect from April 1, 2022. For five consecutive years, the ministry said in a statement.
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The government announced the PLI scheme for the automobile and auto component industry in India to enhance India’s manufacturing capabilities for advanced automotive products with a budgetary outlay of Rs 25,938 crore. The ministry further said, “The PLI scheme for ACC and FAME along with the PLI scheme for the automotive sector will enable India to leapfrog into an environmentally cleaner, sustainable, advanced and more efficient Electric Vehicle (EV) based system.” “
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The PLI scheme for the auto sector is open to existing and new players. The scheme has two components – Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive Scheme is a ‘Sales Value Linked’ scheme, applicable to all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles. The Component Champion Incentive Scheme is a ‘Sales Value Linked’ scheme, applicable to Advanced Automotive Technology Components, Completely Knocked Down (CKD) / Semi Knocked Down (SKD) kits of vehicles. It also extends to two wheelers, three wheelers, passenger vehicles, commercial vehicles and tractors.
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The objectives of the scheme include overcoming cost inefficiencies, creating economies of scale and building a strong supply chain in the area of ATT products. The ministry said that the PLI scheme has been a huge success in terms of applications received from clusters headquartered locally and globally. The statement further said that the PLI scheme along with the Rs 18,100 crore Advanced Chemistry Cell (ACC) scheme and the rapid adaptation of Electric Manufacturing (FAME) worth Rs 10,000 crore will move the country towards a more advanced and fueled Will enable us to grow – efficient electric vehicles.
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