Effect of PLI scheme in automotive sector, Mahindra &Tata Motors got 246 crores incentives
After electronics and pharma, now the effect of Production Linked Incentive (PLI) scheme is visible in the automotive sector. For the first time under the PLI scheme, Tata Motors and Mahindra & Mahindra have claimed incentives in the current financial year 2024-25 and their claim has been approved. Under this scheme, the company can claim incentives only if there is at least 50 percent value addition in the products domestically and increase in sales at both domestic and export levels.
PLI scheme is visible in the automotive sector
The PLI scheme was announced for the automotive sector in September 2021. This scheme was launched with the aim of increasing the production of products with Advanced Automotive Technology (AAT) in the country as well as establishing a strong supply chain in the automotive sector. Under this scheme, the company can claim incentives only if there is at least 50 percent value addition in the products at the domestic level and increase in sales at both domestic and export levels.
Investment of Rs 20,715 crore in automotive sector
Under the Ministry of Heavy Industries, till September 2024, an investment of Rs 20,715 crore has been made in the automotive sector under the PLI scheme. Products worth Rs 10,472 crore have also been sold till this period. According to the ministry, for the first time in the current financial year 2024-25, companies are going to get the benefit of PLI scheme. Mahindra & Mahindra has claimed an incentive of Rs 104.08 crore in the name of increase in production and sales of electric three wheelers and AAT products. Mahindra & Mahindra has so far invested Rs 978.30 crore and the company has sold more than Rs 800 crore in the last financial year 2023-24. Tata Motors made sales of Rs 1380 crore
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Investment of Rs 20,715 crore has been made in the automotive sector
Tata Motors has claimed incentives of Rs 142.13 crore for increasing production and sales of Tiago EV, Starbus EV and Ace EV. Tata Motors has sold these vehicles and AAT products worth Rs 1380 crore in the last financial year.
Summary
According to the Heavy Ministry, both the companies have claimed incentives of Rs 246 crore and after examining these claims by the Project Management Agency, the ministry has approved it. To encourage Make in India, the government announced the PLI scheme in 14 sectors between the year 2020-22. The electronics sector has got a big benefit of the PLI scheme.
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