• Source:JND
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The Ministry of Heavy Industries has approved the Rs 246 crore incentive request submitted by Mahindra & Mahindra and Tata Motors under the Rs 25,938 crore PLI scheme for the automobile and auto component industries. Heavy Industries and Steel Minister H D Kumaraswamy expressed satisfaction over the progress made by auto original equipment manufacturers (OEMs) in achieving localized production through initiatives like the PLI scheme. He congratulated Tata Motors and M&M for improving this capability and expressed hope that more applicants will avail of the PLI scheme.

According to sources, Tata Motors has submitted an incentive amount of Rs 142.13 crore based on projected sales for the financial year 2023-24. The eligible sales of Tata Motors' Advanced Automotive Technology (AAT) products include Tiago EV (electric four-wheeler), Starbus EV (electric bus) and S EV (electric cargo vehicle), totalling Rs 1,380.24 crore.

Based on the projected incremental sales of AAT products to a total of Rs 800.59 crore in the financial year 2023-24, Mahindra & Mahindra has submitted an incentive of Rs 104.08 crore against an investment of Rs 978.30 crore, officials said.

836.02 crore from their e3W models including Treo, Treo Zor and Zor Grand through a Domestic Value Added Certificate (DVA) issued by the Automotive Research Association of India (ARAI).

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The scheme aims to increase India's manufacturing capacity in AAT products, remove cost inefficiencies and establish a robust supply chain.

The PLI scheme, approved on September 15, 2021, is designed to run from FY 2023-24 to FY 2027-28, with the disbursement of incentives planned from FY 2024-25 to FY 2028-29.

Under the scheme, electric vehicles and hydrogen fuel cell-related components are given incentives of 13-18 per cent, while other AAT components get incentives of 8 per cent and 13 per cent respectively.

By September 2024, the scheme has already facilitated investments worth Rs 20,715 crore, increasing sales of Rs 10,472 crore, an official said.

The first disbursement of incentives is expected in 2024-25. Key features of the scheme include a minimum domestic value addition requirement of 50 per cent and eligibility for domestic and export sales.

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(With Inputs From PTI)