Maruti Suzuki, Hero MotoCorp, Lucas-TVS, Tata Cummins, and Toyota Kirloskar Auto Parts are among the 75 firms approved for receiving incentives under the Production Linked Incentive (PLI) scheme for the automobile and auto components sector, the government said on Tuesday.
A proposed investment of Rs 29,834 crore is expected from the 75 approved applicants under the Component Champion Incentive Scheme.
The Ministry of Heavy Industries had earlier selected 20 applicants under the Champion OEM Incentive Scheme. The two components are part of the PLI scheme.
The scheme offers an incentive of up to 18 per cent to encourage industry to make fresh investments in the indigenous supply chain of Advanced Automotive Technology (AAT) products.
"The PLI Scheme for Automobile and Auto Component Industry in India has been successful in attracting proposed investment of Rs 74,850 crore against the target estimate of investment Rs 42,500 crore over a period of five years. The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive Scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive Scheme," an official statement said.
Among the 75 firms selected, two new non-automotive investors (component) companies approved include Bharat Heavy Electricals Limited (BHEL) and Ceat Limited.
Apart from Indian business groups, approved applicants include those from countries such as Japan, Germany, the US, UK, Republic of Korea, Ireland, France, Belgium, Netherlands, and Italy, the statement added.
Heavy Industries Minister Mahendra Nath Pandey said, "The overwhelming response shows that Industry has reposed its faith in India's stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister's clarion call of AtmaNirbharBharat - a self-reliant India."
"India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system," he added.
The PLI scheme for the auto sector was open to existing automotive companies as well as new investors who are currently not in automobile or auto component manufacturing business.
The Champion OEM Incentive scheme is a 'sales value linked' scheme, applicable on battery electric vehicles and hydrogen fuel cell vehicles of all segments.
The Component Champion Incentive scheme is a 'sales value linked' scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, among others.