New Delhi, Jan 3 (IANS) The Ministry of Heavy Industries has approved incentive claims of Rs 246 crore submitted by Mahindra & Mahindra (M&M) and Tata Motors under the Rs 25,938 crore PLI scheme for the automobile and auto components industry, a senior official has confirmed.
Tata Motors had submitted a claim for incentives to the tune of approximately Rs 142.13 crore based on determined sales in FY 2023-24.
The eligible sales of Advanced Automotive Technology (AAT) products from Tata Motors, valued at Rs 1,380.24 crore, include the Tiago EV, Starbus EV and small cargo vehicle Ace EV.
Similarly, M&M submitted an incentive claim of Rs 104.08 crore based on determined incremental sales of AAT products with a total value of Rs 800.59 crore for FY 2023-24, with a cumulative investment of Rs 978.30 crore. The eligible sales from the company’s e3W models include Treo, Treo Zor, and Zor Grand models with a total turnover of Rs 836.02 crore.
The total incentive claims from Tata Motors and M&M added up to around Rs 246 crore, which were examined and recommended for approval by the Project Management Agency (PMA). These claims have now been cleared by the Ministry of Heavy Industries (MHI), the official said.
Minister for Heavy Industries H. D. Kumaraswamy has expressed satisfaction with the progress made by auto original equipment manufacturers (OEMs) toward achieving localised manufacturing.
He also congratulated Tata Motors and M&M for developing this capability and hoped that more applicants would take advantage of the PLI scheme to increase investment and production of environment-friendly green vehicles.
The scheme aims to enhance India’s manufacturing capabilities in AAT products, address cost disabilities, and establish a robust supply chain.
Union Cabinet approved the PLI-Auto Scheme in September 2021 with a budgetary outlay of Rs 25,938 crore for a period of five years (FY2022-23 to FY2026-27). The incentive disbursements of the scheme are scheduled from FY 2024-25 to FY 2028-29.
The PLI-Auto Scheme aims to boost the manufacturing of Advanced Automotive Technology (AAT) Products and promote deep localisation for AAT products with the creation of domestic as well as global supply chains.
Under this scheme, incentives of 13-18 per cent are offered for components related to electric vehicles and hydrogen fuel cells, while other AAT components receive incentives of 8 per cent and 13 per cent.
As of September 2024, the scheme already facilitated an investment of Rs 20,715 crore, leading to incremental sales of Rs 10,472 crore, according to official figures.
The scheme sets a minimum requirement of 50 per cent domestic value addition as eligibility for both domestic and export sales.
The approved applicant has to submit the Domestic Value Addition certificate duly cost audited by an external auditor and self-certified by the authorized representative of the approved applicant through the PLI Auto Portal in the prescribed format.
–IANS
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