The Ministry of Heavy Industries has approved incentive claims of Rs 246 crore submitted by Mahindra & Mahindra and Tata Motors under the Rs 25,938 crore PLI scheme for the automobile and auto components industry, officials said.
Read More:Mumbai Sees Record-Breaking House Sales in 2024, Highest in 13 Years
Minister for Heavy Industries and Steel H D Kumaraswamy has expressed satisfaction with the progress made by auto original equipment manufacturers (OEMs) toward achieving localized manufacturing through initiatives like PLI scheme.
Read More:More Jobs Created, Better Macro Growth Recorded During PM Modi’s Tenure Vs UPA Regime: RBI Data
He also congratulated Tata Motors and M&M for developing this capability and exuded confidence that more applicants would take advantage of the PLI scheme.
According to sources, Tata Motors submitted an incentive claim of approximately Rs 142.13 crore based on determined sales in FY 2023-24.
Read More:Stock Market Holidays 2025: NSE, BSE To Remain Shut On These 14 Days; Full List
The eligible sales of Advanced Automotive Technology (AAT) products from Tata Motors include the Tiago EV (electric four-wheeler), Starbus EV (electric bus ), and Ace EV (electric cargo vehicle), totalling Rs 1,380.24 crore.
Mahindra & Mahindra submitted an incentive claim of Rs 104.08 crore based on determined incremental sales of AAT products totalling Rs 800.59 crore for FY 2023-24, with a cumulative investment of Rs 978.30 crore, officials said.
The eligible sales from their e3W models, including Treo, Treo Zor, and Zor Grand amount to Rs 836.02 crore, supported by a certificate of domestic value addition (DVA) issued by the Automotive Research Association of India (ARAI).
Read More:What Is The Difference Between IMPS And NEFT? Which Is Costlier?
“The total claims from these two applicants amount to approximately Rs 246 crore, which have been examined and recommended by the Project Management Agency (PMA) and subsequently approved by Ministry of Heavy Industries (MHI),” an official said.
The scheme aims to enhance India’s manufacturing capabilities in AAT products, address cost disabilities, and establish a robust supply chain.
Read More:Budget 2025 Date And Time: When Will FM Nirmala Sitharaman Present Union Budget This Year?
Approved on September 15, 2021, the PLI scheme is designed to operate from FY 2023-24 to FY 2027-28, with incentive disbursements scheduled from FY 2024-25 to FY 2028-29.
Under this scheme, incentives of 13-18 per cent are offered for components related to electric vehicles and hydrogen fuel cells, while other AAT components receive incentives of 8 per cent and 13 per cent.
Read More:Small Savings, Big Returns: 2025 Interest Rates And Benefits Of Top 10 Government Schemes
As of September, 2024, the scheme has already facilitated an investment of Rs 20,715 crore, leading to incremental sales of Rs 10,472 crore, said an official.
Read More:Gold Rate Today In India On January 02: Check 22, 24 Carat Prices In Your City Now
The first incentive disbursement is anticipated in 2024-25. Key features of the scheme include requirement of a minimum of 50 per cent domestic value addition and eligibility for both domestic and export sales.
