Government receives overwhelming response in PLI scheme for auto sector; investments worth Rs 75,000 cr proposed; announcement likely today

Government has received a huge response on its Production Linked Incentive (PLI) scheme on automobile and auto components. Zee Business Executive Editor, Swati Khandelwal brings this exclusive report on this.

Khandelwal said that the Government of India had announced a PLI scheme worth Rs 42,500 crore to incentivise automobile and component manufactures and the response has been overwhelming. The 

Government is to officially announce that it has received proposals for investments of up to Rs 75000 crore.

The response to the scheme has even surpassed the government's expectations which speaks volumes on the success of this scheme, the Executive Editor tell Zee Business Managing Editor Anil Singhvi. This investment is to extend over a period of five years.

The GOI is offering an 18 per cent of incentive with respect to the production of the auto industry-related sector, she added.

The Government has approved around 73 auto-sector companies for the PLI scheme.

Breaking down the proposed investment figure, Khandelwal said that the proposed investment for the Champion OEM incentives had been Rs 45000 crore, and for the auto-component, the proposed investment is Rs 30,000 crore. And these numbers are from the approved applicants.

She said India comes under the top five contributors in the auto industry segment in terms of volume, and the auto industry collectively contributes to a total of 35 per cent of the country’s GDP.

Tata Motors, Maruti Suzuki, Kia, M&M, etc., are planning to make a good amount of investments, Khandelwal claimed.

Zee Business’ Managing Editor, Anil Singhvi, further added that it is the biggest ever investment that India will witness for any sector so far. The investment proposal demonstrates that the auto companies are also excited about the incentive.

Also, he said that auto ancillary would benefit more than automobile companies from the PLI scheme because of less competition.

Company to remain in focus.

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₹45000 Cr की PLI स्कीम
ऑटो कंपोनेंट कंपनियों के लिए PLI स्कीम का ऐलान आज
PLI स्कीम के लिए ₹75000 Cr की बोलियां मिली

पूरी खबर जानिए स्वाति खंडेलवाल से..@SwatiKJain pic.twitter.com/aSlxqGnyq3

— Zee Business (@ZeeBusiness) March 15, 2022