NEW DELHI, Jan 2: The Ministry of Heavy Industries has sanctioned incentive claims totaling Rs 246 crore submitted by Mahindra & Mahindra and Tata Motors under the substantial Rs 25,938 crore PLI scheme for the automobile and auto components sector, according to officials.
Minister for Heavy Industries and Steel, H D Kumaraswamy, has expressed his approval of the advancements made by auto original equipment manufacturers (OEMs) in achieving localized manufacturing through initiatives such as the PLI scheme.
He also commended Tata Motors and M&M for their progress in developing this capability and expressed confidence that additional applicants will benefit from the PLI scheme.
As per sources, Tata Motors has filed an incentive claim of about Rs 142.13 crore based on validated sales for the fiscal year 2023-24.
The eligible sales from Tata Motors’ Advanced Automotive Technology (AAT) products include the Tiago EV (electric four-wheeler), Starbus EV (electric bus), and Ace EV (electric cargo vehicle), amounting to a total of Rs 1,380.24 crore.
Meanwhile, Mahindra & Mahindra has submitted an incentive claim of Rs 104.08 crore, which is based on verified incremental sales of their AAT products that total Rs 800.59 crore for FY 2023-24, with a total investment of Rs 978.30 crore, officials reported.
The eligible sales from their e3W models, which include Treo, Treo Zor, and Zor Grand, amount to Rs 836.02 crore, supported by a domestic value addition (DVA) certificate from the Automotive Research Association of India (ARAI).
“The claims from both companies total around Rs 246 crore, which have undergone examination and recommendation by the Project Management Agency (PMA) and were subsequently approved by the Ministry of Heavy Industries (MHI),” stated an official.
This scheme is aimed at boosting India’s manufacturing capabilities in AAT products, mitigating cost hurdles, and building a strong supply chain.
Approved on September 15, 2021, the PLI scheme is intended to be active from FY 2023-24 through FY 2027-28, with incentive disbursements planned from FY 2024-25 to FY 2028-29.
Incentives between 13-18 percent are provided for components related to electric vehicles and hydrogen fuel cells, while other AAT components receive incentives ranging from 8 percent to 13 percent.
By September 2024, the scheme has already facilitated an investment of Rs 20,715 crore, resulting in incremental sales of Rs 10,472 crore, according to an official.
The first incentive payments are expected in 2024-25. Key aspects of the scheme include a requirement for at least 50 percent domestic value addition and eligibility for both domestic and export sales. (PTI)
