Auto Sector Expected To Generate 7.5 Lakh Jobs Through PLI Scheme: Govt. Official

In this year’s budget session, Finance Minister Nirmala Sitharaman had talked about creating 60 lakh jobs across the country through the PLI scheme in the coming five years.

The government expects 7.5 lakh additional jobs across the country through the Production Linked Incentive Scheme (PLI) in the auto sector. Arun Goyal, Secretary of Ministry of Heavy Industries, gave this information. He said that in this year’s budget, Finance Minister Nirmala Sitharaman had talked about creating 60 lakh jobs across the country through the PLI scheme in the coming five years. On Friday, the Ministry of Heavy Industries approved 20 applications under the CHAMPION OAM PIL scheme.

Arun Goyal further informed that the auto companies have placed before the government schemes worth Rs 45,016 crore under the PLI scheme. He announced that the application was open for 60 days. Till January 9, a total of 115 applications have been received. Of these, 87 have come under the auto component category and 38 under the OEM vehicle category. Out of these, five applications have come for both types. Hence 120 applicants have been selected out of 150 applications.

Ninety-two applications have been received under the auto component. These are in process and may take 3 to 4 weeks. At the same time, out of 28 applications under the OEM category, 20 have been considered eligible. Arun Goyal said that all these companies would have to submit their products to the testing agency. An essential condition for selection is that 50% of the value addition should be domestic or made in India. He further said that this investigation would be done till Tier 3. A large number of jobs will be created in the MSME sector.

Talking about the incentives available to electric vehicles, Goyal said that India provides the best incentives in the world for electric cars. As a result, we will notice a growth of battery electric vehicles on the roads in the coming time. This will help in promoting the eco-system of electric cars. PLI Scheme for Automobiles and Auto Components (Rs 25,938 crore), PLI for ACC (Rs 18,100 crore) as well as FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicle) Scheme (Rs 10,000 crore) to make India an environmentally clean, sustainable, advanced and better Electric Vehicle based will help build the system.

The government has shortlisted 20 companies for the Rs 25,938 crore Production Linked Incentive (PLI) scheme for the automobile industry. The scheme got a great response. For this, 115 companies had given applications. The PLI scheme has two parts – the Champion Original Equipment Manufacturer (OEM) Incentive Scheme and the Vehicles Parts Champion Incentive Scheme. Champion is an OEM sales price linked plan. These are for electric vehicles and hydrogen cell vehicles. The 20 shortlisted companies will get an incentive of 13-18%.

Tata, Ashok Leyland, Hyundai are among the 20 companies shortlisted for the PLI scheme. Tata Motors has proposed an investment of 3 thousand crores in five years through the PLI scheme.

10 companies shortlisted in Auto PLI scheme

Champion OEM

Ashok Leyland Ltd.
Eicher Motors Ltd.
Ford India Pvt. Ltd.
Hyundai Motor India Ltd.
Kia India Pvt. Ltd.
Mahindra & Mahindra Ltd.
PCA Automobile India Pvt. ltd
Pinnacle Mobility Solution Pvt. ltd
Suzuki Motors Gujarat Pvt. Ltd.

10 Tata Motors Ltd.

Champion OEM (2-3 Wheelers)

Bajaj Auto Ltd.
Hero Motocorp Ltd.
Piaggio Vehicles Pvt. Ltd.
TVS MOTOR COMPANY LTD.

Non-Automotive Investor (OEM)

Axis Clean Mobility Pvt. Ltd.
Booma Inno. trans. Solutions Pvt. Ltd.
Elest Pvt. Ltd.
Hop Electric Techno. Pvt. Ltd.
Ola Electric Techno. Pvt. Ltd.
Powerhall Vehicles Pvt. Ltd.

The incentives received under the PLI scheme will bring an investment of 45,016 crores in the country’s auto sector in 5 years, as well as create 7.5 lakh employment opportunities. Apart from this, there will also be an increase in the production of 2.3 lakh crores.

Published by- Aashay Bhujbal

Edited by- Kritika Kashyap