Ministry of Heavy Industries plans to clear over 36 proposals worth Rs 25,938 crore under PLI in 18 months
Homegrown car majors - Tata Motors and Mahindra have applied for benefits for 10 products each, likes of Ola, Ashok Leyland, and Toyota Kirloskar too have submitted one application each.
Slow off the mark, the Ministry of Heavy Industries is expected to clear over 36 incentive proposals worth Rs 25,938 crore for vehicle and component makers in the next 18 months under its production-linked incentive scheme.
According to senior ministry officials about 24 component manufacturers and 12 vehicle makers along with government testing agencies ARAI, ICAT, Natrax, and IFCI as the project manager, would work together to expedite the process of providing eligibility certifications.
Tata Motors and Mahindra & Mahindra (M&M) have applied for benefits for 10 products each, as per the IFCI, which monitors the progress of the applicants to the PLI scheme. While the maker of the Scorpio and Bolero SUVs has received approval for eight products, while Tata Motors has received approval for four products from the regulatory authorities.
Hanif Quershi, Joint Secretary, Ministry of Heavy Industries, told Autocar Professional that the MHI's priority now is to accelerate the PLI scheme by encouraging applicants who have received government approval to begin making investments as it is a sales-driven scheme.
"We are well-equipped to handle applications and ensure that many more companies receive eligibility certificates and begin collecting quarterly incentives under the scheme." Qureshi further stated
MHI officials stated that Ola Electric Technologies, Ashok Leyland, and Toyota Kirloskar have each applied for one product under the government's AAT scheme, and their applications are being reviewed by the appropriate authorities.
Companies like TVS Motor Company and part makers such as Advik Hi-Tech, Bosch Ltd., Cummins DanaAnand India Pvt. Ltd., Delphi-TVS, Denso Ten Minda, and Hero Cycles Limited are set to put up their proposal with the authorities.
ARAI sets up a dedicated team to expedite the issuance of certificates
Speaking to Autocar Professional, Automotive Research Association Director Reji Mathai said that the testing agency has formed a dedicated team to work on awarding the eligibility certificates within 45 days, rather than the stipulated three months.
Mathai has advised OEMs and component manufacturers to be thorough in their documentation, noting that the testing agency has received several PLI certification proposals with insufficient documentation. "Automakers must exercise caution in their documentation to ensure that the same parts and their matching part numbers of other components are aligned," he added.
Mahendra Nath Pandey, Union Minister for Heavy Industries, had recently told Autocar Professional that his ministry's next goal will be to boost the country's component ecosystem.
Pandey has invited component manufacturers to begin the process of filing for eligibility certifications with testing organizations ARAI and ICAT, and he has stated that his ministry prioritises domestic manufacturing of components, which are now primarily acquired from outside sources.
"Our goal is to move the automobile industry up the value chain in higher-value-added products such as sunroofs and automatic brakes, pollution warning systems, and tyre pressure monitoring systems," Pandey explained.
The government's focus on PLI, according to Rahil Gupta, Co-founder and Chief Technology Officer of Jaipur-based Hop Electric would strive to boost domestic manufacture of EVs and components. "Hop Electric is looking for partnerships with global OEMs and V/C firms that are willing to invest in the PLI opportunity while also growing the component base for the EV industry."
According to MHI, the goal of deep localisation and development of Advanced Automotive Technology (AAT) Products within the country cannot be met without the support and expansion of the Automotive Industry.
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