New Delhi, March 27 Companies under the PLI-Auto scheme have committed over Rs 25,219 crore in capital investment (till December 2024), including setting up new production facilities and upgrading technology while generating 38,186 jobs, the government said on Thursday.
For instance, Tata Motors and Mahindra & Mahindra have committed to massive investments in EV production capacity, said the Ministry of Heavy Industries in a statement.
The incremental sales under the PLI-Auto scheme reached Rs 15,230 crore till December 2024, with incentive disbursement at Rs 322 crore.
“FY 2023-24 was the first performance year of the scheme for which disbursement happened in FY 2024-25. Aggregate incentives of Rs 322 crore have been disbursed under the scheme as of now,” according to the ministry.
Sales growth in sectors like electric vehicles (EVs) and critical components have seen significant improvements. For example, the introduction of new models in the EV sector has led to a rise in sales.
“The scheme also has created thousands of direct and indirect jobs in manufacturing, supply chain management, and R&D. Notably, new EV production plants have led to localised employment in manufacturing hubs,” according to the ministry.
The PLI-Auto scheme is playing a transformative role in enhancing India's automotive manufacturing ecosystem, reducing dependence on imports, and integrating the domestic industry into the global supply chain.
The Union Cabinet approved the PLI Scheme for Automobile and Auto Components on September 15, 2021, with a budgetary outlay of Rs 25,938 crore.
PLI-Auto Scheme envisages overcoming the cost disabilities to the industry for manufacturing and boosting domestic manufacturing of Advanced Automotive Technology (AAT) products in India.
The PLI Auto scheme has been responsive to the dynamic needs of the industry. The ministry notified the categories of 19 AAT vehicles and 103 AAT components that will be covered under the scheme after elaborate stakeholder consultations.
To promote the ‘Make in India’ campaign and boost domestic manufacturing of advanced automotive products, scheme applicants must achieve a domestic value addition (DVA) of 50 per cent to be eligible for incentives.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor