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New Delhi: The production linked incentive (PLI) scheme for automobile and auto component sectors has attracted investment proposals of Rs 74,850 crore for the next five years, 76.11 per cent higher than the planned target of Rs 42,500 crore, the government data showed on Tuesday.

The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive scheme, according to data released by the Ministry of Heavy Industries.

A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry in India which was notified on 23 September 2021. Out of which, five Auto OEM companies had applied for both the parts of the scheme. The scheme was open for receiving applications till 9 January 2022.

Incentives are applicable under the scheme for Determined Sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from 1 April 2022 onwards for a period of 5 consecutive years.

“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India. India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system,” Union Heavy Industries Minister Mahendra Nath Pandey said in a statement.

The government has introduced the PLI scheme for automobile and auto component industry for enhancing India’s manufacturing capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs 25,938 crore.

The PLI scheme for automobile and auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.

Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products.