The approval granted by the government to 75 auto component manufacturers for incentives under the PLI scheme will act as a catalyst in the transformational journey from a conventional industry to a mobility industry, industry body ACMA said on Tuesday.
Out of a total of 92 auto component manufacturers that applied, 75 have been approved for incentives under the production-linked incentive (PLI) scheme for five years, the Automotive Component Manufacturers Association of India (ACMA) said in a statement.
The government on Tuesday said that the PLI Scheme for Automobile and Auto Components has been successful in attracting a proposed investment of Rs 74,850 crore against the target estimate of investment of Rs 42,500 crore over five years.
The scheme commencing from FY22-23 has an outlay of Rs 25,938 crore.
“Today’s announcement has indeed enthused the entire auto components industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry,” ACMA President Sunjay J Kapur said in a statement.
Thanking the government “for its generous selection of companies that will benefit from the scheme”, he said a slew of policy measures announced in the recent past by the government “will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive”.
Recent policy announcements include the extension of FAME-II scheme, PLI scheme on ACC battery and policy initiatives on battery-swapping and energy-as-a-service.
ACMA said a total of 115 companies (auto and auto components) had filed their application. Of these, 20 have already been accorded approval for incentives in February 2022.
ACMA Director-General Vinnie Mehta said the PLI scheme will not just help the component manufacturers become globally competitive but will also provide much-needed momentum to the ‘Make in India’ initiative.
“The scheme will lead to additional employment opportunities in India and provide an impetus to the industry to invest in cutting edge technologies to stay relevant,” he added.