The government has also selected firms from Germany, the United States, the Netherlands, Japan, South Korea, France and Italy for the scheme. This selection has been done for 103 components under the Champion Component Scheme. In the companies selected for auto component PLI, around 8-13 per cent incentive will be given to those companies manufacturing components like safety items, flex fuel, CNG, LNG, emission control equipment, passenger comfort items, fuel efficiency components, sensors, etc. Will do Whereas 13-18 percent incentive will be given to those companies which will work in the field of hydrogen and components of electric vehicles.
On November 11, 2021, the Union Cabinet had approved the Rs 1,45,980 crore Production-Linked Incentive (PLI) scheme for 10 sectors. These sectors include pharmaceuticals, automobiles and auto components, telecom and networking products, advanced chemistry cell batteries, textiles, food products, solar modules, white goods and specialty steel.
At the same time, schemes worth Rs 25,938 crore have been included for the automobile and auto component sector only. The government has also announced Rs 120 crore for the drone industry.
Earlier on March 7, Commerce and Industry Minister Piyush Goyal had said that budget announcements and steps like Production Linked Incentive (PLI) scheme are efforts to make the country self-reliant and achieve sustainable development. On February 11, 2022, the government had approved 20 applicants for the Production-Linked Incentive (PLI) scheme for the automobile and automobile component industry under the “Champion OEM Incentive Scheme”.
The government had said that Ford, Tata Motors, Suzuki, Hyundai, Kia and Mahindra & Mahindra were among the 20 companies that would be eligible to receive incentives under the PLI scheme for the automobile and auto component sectors.
As of January 9, 2022, 115 firms had filed applications under the PLI scheme for the automobile and auto component sector, which was notified in September last year. According to the information, PLI for the automobile and auto components sector will create 7.5 lakh additional jobs and incremental generation of Rs 2,31,500 crore over the next five years.