The Centre will soon announce the names of the companies shortlisted for benefits under the production linked incentive (PLI) scheme for the automobile and auto component sector, said sources.
Of the 115 companies that applied, the government has finalised more than 70 names, according to people familiar with the matter.
As per sources, along with Motherson Sumi Systems and Minda, other companies namely Bosch, Tata Auto Components, Bharat Forge, Ceat, Sandhar Technologies, Sona Comstar and Lumax are among those shortlisted.
Sources also claimed that Maruti Suzuki, Toyota Components, Delphi TVS, Hella India and Dana Group have qualified for the scheme.
It is also learnt that some automobile companies from Germany, the United States, Netherlands, Japan, South Korea, France and Italy are expected to be included in the list.
COMPONENT CHAMPION INCENTIVE SCHEME
In December 2021, the Centre launched the PLI scheme for automobile and auto component industries, with a budgetary outlay of Rs 25,938 crore over five years to improve India’s manufacturing capabilities for Advanced Automotive Products.
It is divided into two parts – the Champion OEM Incentive Scheme and the Component Champion Incentive Scheme.
As per the government, the Component Champion Incentive Scheme aims to discover and reward auto component champions, who can attain a global scale of operations and become ‘Automotive Champions’.
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The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable to advanced automotive technology components of vehicles, completely knocked down/ semi knocked down kits, vehicle aggregates of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, etc.
As per sources, 103 components will benefit from this scheme.
The government earlier stated that the incentive payable for Component Champion and New Non-Automotive (Component) Investor company ranges from 8-11%, with an additional 5% incentive for battery electric vehicles and hydrogen fuel cell vehicle components.
Now, according to sources, there will be 8-13% incentive for safety items, flex fuels, CNG, LNG, emission control devices, passenger convenience items, fuel efficiency components, sensors, and others.
Meanwhile, sources also said that 13-18% incentive will be given to components of hydrogen and electric vehicles.
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