Review of PLI- Auto Scheme, fostering a conducive business environment and accelerating growth in Indian Auto sector
DNA News Desk
New Delhi :- Ministry of Heavy Industries (MHI) organised a meeting for “Review of PLI-AUTO Scheme” under the Chairmanship of Union Minister for Heavy Industries Dr. Mahendra Nath Pandey, here today. The objective of the meeting was to ascertain the problem or difficulties faced by OEMs and component companies under the PLI-AUTO scheme. Industry leaders were encouraged to come forward and share their problems and views. The meeting was organised in line with the vision of the Prime Minister, Shri Narendra Modi, to make India a global hub for manufacturing. Minister of State for Heavy Industries, Shri Krishan Pal Gurjar, Secretary, MHI, Shri Kamran Rizvi, Addl. Secretary, MHI and other senior officials were present in the meeting.
The event witnessed participation from approved applicants under the scheme, officials from MHI, NITI Aayog, IFCI (Project Management Agency for the Scheme), Testing Agencies of MHI viz. ARAI, ICAT, GARC & NATRAX, Automobile Associations viz. SIAM & ACMA and media professionals.
MHI has taken various initiatives to promote Cleaner Mobility and to develop an ecosystem of Innovation and Technology. The Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-AUTO) with an outlay of ₹25,938 crore is a key initiative to drive the supply chain of Advanced Automotive Technology (AAT) products.
Delivering the keynote address at the event, Dr. Pandey called for industry’s feedback and collaborative engagement to shape the policies, procedures and effectiveness of the PLI scheme. He said that the government is committed to fostering a conducive business environment and accelerating growth in the Indian Automotive sector.
The Minister mentioned that the PLI-AUTO scheme incentivizes only those eligible AAT products for which minimum 50% Domestic Value Addition (DVA) is achieved and has been certified by Testing Agencies (TAs) of MHI. This criterion shall reduce imports, facilitate deep localization for AAT products and enable creation of domestic as well as global supply chain.
Speaking on the occasion, Shri Krishan pal Gurjar said that Auto Industry contributes 7% to country’s GDP and PLI scheme will further enhance the competitiveness of the sector and will create more employment opportunities.
In his address, Secretary, MHI, Shri Kamran Rizvi said that automotive industry is a major economic contributor in India. The PLI-AUTO scheme will make the Indian automotive industry more competitive and will enhance globalization of the Indian automotive sector and incentivize emergence of global supply chain for Advanced Automotive Technologies (AAT) in India. He further stated that the scheme will herald a new age in higher technology, more efficient and green automotive manufacturing, he added.
Attendees included giants of automotive sector such as Tata Motors, Mahindra & Mahindra, OLA electric, Ashok Leyland, Hyundai Motor, Bosch, Toyota Kirloskar Auto Parts, Minda Industries, Delphi-TVS, among others. Their presence ensured a diverse range of perspectives and fostered an environment of knowledge-sharing and networking. Key executives from these companies, along with government officials were actively involved in a collaborative open discussion and Q&A sessions throughout the event.
A comprehensive presentation highlighting the progress and performance under the PLI scheme was made. The investment as reported by the applicants (till 30th June 2023) is ₹ 10,755 crore. To facilitate ease of doing business (EODB) in the scheme, MHI published Standard Operating Procedure (SOP) for DVA certification on 27th April 2023. Thereafter, two applicants namely Tata Motors and Mahindra & Mahindra have received DVA certification, and four more applicants have applied for DVA certification. Further, another 23 applicants are expected to apply for DVA certification by the end of September 2023. A detailed SOP is being framed for verification and processing incentive claims and stakeholder consultations for the same shall be initiated shortly.
