Lok Sabha Question No. 234 (STARRED), answered on 2023-12-19
Subject: PLI Scheme for Automobile and Auto Components Industry
Ministry: HEAVY INDUSTRIES
Asked by: Sanghamitra Maurya, Lallu Singh

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA STARRED QUESTION NO. 234

ANSWERED ON 19.12.2023

## PLI SCHEME FOR AUTOMOBILE AND AUTO COMPONENTS INDUSTRY

## *234.  DR. SANGHMITRA MAURYA: SHRI LALLU SINGH:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) the details of the Production Linked Incentives (PLI) Scheme for Automobile and Auto Components Industry along with the number of applicants vis-a-vis those whose applications have been approved;
- (b) the  details  of  allocation  and  utilization  of  budget  for  the  said  Scheme  along  with  the measures taken for monitoring the progress and outcomes thereof during the last five years; and
- (c) the action taken to increase the participation and profit of Small and Medium Enterprises in the automobile and auto component sector through the said Scheme?

## ANSWER THE MINISTER OF HEAVY INDUSTRIES (DR. MAHENDRA NATH PANDEY)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 234 FOR 19.12.2023 ASKED BY DR. SANGHMITRA MAURYA AND SHRI LALLU SINGH ON 'PLI SCHEME FOR AUTOMOBILE AND AUTO COMPONENTS INDUSTRY'

- (a): Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India (PLI-AUTO) on 15.09.2021, with a budgetary outlay of  Rs.  25,938  crore.    PLI-AUTO  scheme  proposes  financial  incentives  to  boost  domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.  The details of the scheme can be seen at the website of Ministry of Heavy Industries (MHI) at https://heavyindustries.gov.in/pli-schemeautomobile-and-auto-component-industry.
- 115 companies submitted applications under the scheme and 85 applicant companies were selected including 18 OEMs and 67 Component Companies.
- (b): The PLI Auto scheme has total approved budgetary outlay of Rs. 25,938 crore and disbursement will start from the FY 2024-25.

The following measures have been taken to monitor the progress and outcome of the scheme:

1. Appointment of Project Management Agency (IFCI Ltd.);
2. Launch of online portal of the scheme: https://pliauto.in/;
3. SOP for Domestic Value Addition (DVA) has been issued;
4. Periodic visit to the manufacturing plant of the approved beneficiary companies;
5. Quarterly review of the progress of the scheme.
6. (c): The eligibility criteria under the scheme for Champion OEMs Companies is global turnover of Rs. 10,000 crore and investment of Rs. 3000 crore in fixed assets.  For Component Champion companies, it is global turnover of Rs. 500 crore and investment of Rs. 150 crore in fixed assets.

While the scheme is promoting global champions in the automotive industry, it will also  lead  to  overall  increased  manufacturing  activity  downstream  with  establishment  of supply  chain  where  Small  and  Medium  Enterprises  (SMEs)  are  likely  to  participate  and benefit.

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