Unlocking Potential of Idle Financial Assets in India (See 'Corp Brief') SARFAESI - In absence of any adjudication by the DRT in determining the debt, statutory scheme permits reliance upon claim made by secured creditor for purpose of fixing pre-deposit: HC (See 'Legal Desk') CCI okays acquisition of shares in Nxtra Data by Alpha Wave Ventures (See 'Corp Brief') CCI okays acquisition of 21% voting interest in Astemo Ltd. by Honda Motor (See 'Corp Brief') FEMA - Claims & liabilities pertaining to periods prior to approval of resolution plan, which do not survive under approved plan, are extinguished & cannot be enforced: SAFEMA (See 'Legal Desk') Special Drive launched for expeditious Disposal of Long-Pending Labour Cases (See 'Corp Brief') Amit Shah to launch NAFED's auction portal 'NAFEX.in' (See 'Corp Brief') SEBI - A judicial pronouncement cannot ordinarily be modified or reviewed through post-disposal miscellaneous application; Tribunal becomes functus officio upon disposal of appeal: SAT (See 'Legal Desk') Railways approves Kavach Deployment Worth Rs.270 Crore on East Coast (See 'Corp Brief') DIBD and AISF sign MoU to promote Language Technology and Multilingual Innovation in Assam (See 'Corp Brief') IPR - Injunction allowed as defendant's adoption of marks is not honest or bona fide; marks are deceptively similar to plaintiff's registered trademark, such that an average consumer with imperfect recollection would likely be confused: HC (See 'Legal Desk') NMDC accelerates Digitalisation and Sustainable Mining to support 100 MTPA Vision (See 'Corp Brief') Union Minister sanctions over 42,000 houses in MP; 38,000 families perform grih pravesh (See 'Corp Brief') A&C - Where a Section 34 court has already examined the award, a possible alternative interpretation of the contractual clause is insufficient to justify interference: HC (See 'Legal Desk') Tech Innovation and disruption in Construction Industry (See 'CORP EINSICHT') Union Minister reviews Power Sector and Urban Development Schemes with Jharkhand Govt (See 'Corp Brief') APEDA facilitates First Export of fresh Uttarakhand Litchi to Italy (See 'Corp Brief') Trade Marks - Quasi-judicial authority cannot validly base its decision on grounds that were not specifically disclosed in SCN, thereby depriving noticee of an effective opportunity to respond: HC (See 'Legal Desk') Nadda calls for Push towards a TB-Free India (See 'Corp Brief') India must take control of security-related necessities to remain future-ready: RM (See 'Corp Brief') A&C - Financial hardship cannot justify payment of disputed amount linked to fulfilment of deliverable-based obligations: HC (See 'Legal Desk')

Print

PLI Scheme for Automotive Sector a big success: Govt

Published: Jan 10, 2022

By TIOLCorplaws News Service

NEW DELHI, JAN 10, 2022: A total of 115 companies have filed their application under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India which was notified on 23rd September 2021. The scheme was open for receiving applications till 23:59:59 hours IST on 9th January 2022. Incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1st April 2022 onwards for a period of 5 consecutive years.

The Government has approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India for Enhancing India's Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs.25,938 crore. The Production Linked Incentive (PLI) Scheme for Automobile and Auto components proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value-added products.

Following is the category-wise distribution of applications received:

Sl. No.

Primary Category

Number of Applications

1

Champion OEM (Except 2W & 3W)

13

2

Champion OEM (2W & 3W)

7

3

New Non-Automotive Investor (OEM) Company

9

4

Component Champion

83

5

New Non-Automotive Investor (Component) Company

3

 

Total

115

The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient and green automotive manufacturing. The PLI Scheme for the auto sector envisages to overcome the cost disabilities to the industry for manufacturing of Advanced Automotive Technology products in India. The incentive structure will encourage industry to make fresh investments in indigenous supply chain/ deep localization of AdvancedAutomotive Technology products.

The PLI Scheme for 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 scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a 'sales value linked' scheme, applicable on Battery ElectricVehicles and Hydrogen Fuel Cell Vehicles of all segments. The Component Champion Incentive schemeis a 'sales value linked' scheme, applicable on Advanced Automotive Technology components ofvehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors, etc.

This PLI Scheme for automotive sector (Rs.25,938 crore) along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (Rs.18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles(FAME) (Rs.10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

The PLI scheme for Automobile and Auto Component Industry has been a huge success in terms of the applications received from local as well as globally headquartered groups engaged in/ proposing to manufacture Advanced Automotive Technology vehicles/ products.

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 AtmaNirbhar Bharat - a self-reliant India.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.