IndiaAI Mission and NHA felicitate Winners of AB PM-JAY Auto-Adjudication Hackathon (See 'Corp Brief') Jammu-Srinagar Vande Bharat Express Services serve around 45,000 Pax in first 10 Days of its Run (See 'Corp Brief') National Conference held on nationwide EV Charging Infrastructure under E-DRIVE Scheme (See 'Corp Brief') IPR - Computer-related invention which merely uses algorithm to colour-code message recipients based on message address characteristics, does not become patentable: HC (See 'Legal Desk') NHAI successfully defends arbitration claims in Panipat–Jalandhar Highway Disputes (See 'Corp Brief') Kumaraswamy announces Rs 123 Crore EV Charging Boost for Karnataka (See 'Corp Brief') Pradhan addresses Bharat Innovates 2026 High-level Diplomatic Conclave (See 'Corp Brief') AIIMS New Delhi has always been more than a hospital - a brand in itself: Nadda (See 'Corp Brief') Misc - If Union of India claims title over land on basis of old government grant and subsequent constitutional vesting, it must prove that title in fact remained vested in Government: HC (See 'Legal Desk') CCI approves acquisition of Kenvue Inc. by Kimberly-Clark (See 'Corp Brief') CCI approves Adani Power to buy stake of GVK Energy (See 'Corp Brief') IBC - If transaction was builder-linked contractual arrangement rather than pure financial debt default, Section 7 IBC proceedings cannot be used in parallel with DRT recovery proceedings: SC (See 'Legal Desk') CCI approves acquisition of stake in Llyods Engineering by Thriveni Earthmovers (See 'Corp Brief') CCI approves acquisition by CPPIB India in Ctrl S Datacenters (See 'Corp Brief') Govt pushes India Post toward Corporate-Style Efficiency (See 'Corp Brief') IPR - Use of house mark does not by itself obviate infringement or passing off: HC (See 'Legal Desk') Present petro conservation intended towards long-run capacity building: RM (See 'Corp Brief') Atal Innovation Mission hosts AIM Sumvaad- Central India to strengthen regional incubators (See 'Corp Brief') FERA - Foreign judgment is unenforceable in India as it fell within exceptions u/s 13 CPC: SC (See 'Legal Desk') Forum of Regulators celebrates 21 Years of strengthening India's Power Sector (See 'Corp Brief') A&C - Once seat of arbitration is expressly designated by agreement of parties, that seat becomes juridical home of arbitration and operates akin to exclusive jurisdiction clause: SC (See 'Legal Desk') Supreme Court lays down scenarios for lifting of Doctrine of Corporate Veil (See 'CORP EINSICHTf') Fisheries Secy visits ornamental fish brood bank in Maharashtra (See 'Corp Brief') Company Law - For purpose of maintainability of petitions u/s 397 & 398, expression ‘member' is not to be confined only to formal entry in register of members u/s 41(2): SC (See 'Legal Desk') Over 3,500 Participants compete in AB PM-JAY Hackathon (See 'Corp Brief') Scindia, Fadnavis inaugurate renovated Andheri RS Post Office as Future-Ready Service Hub (See 'Corp Brief') IBC - While subsidiary companies are separate legal entities, corporate veil may be lifted if associated companies are inextricably connected so as to form one concern: SC (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.