PLI Incentive : The government has approved incentive claims of Rs 246 crore of Mahindra & Mahindra and Tata Motors under the Rs 25,938 crore production-linked incentive (PLI) scheme for the automobile and auto components industry under the Ministry of Heavy Industries.

Mahindra & Mahindra and Tata Motors to get approval under PLI scheme

Heavy Industries and Steel Minister H D Kumaraswamy lauded such initiatives to boost local production in vehicle manufacturing. He said he was satisfied to see the progress made by Mahindra & Mahindra and Tata Motors and expressed confidence that other companies would also benefit from the scheme.

According to sources, Tata Motors has claimed incentives of Rs 142.13 crore based on the sales scheduled in the 2023-24 financial year. The products that Tata Motors has included in the sale include electric vehicles with cutting-edge vehicle technology such as Tiago EV, Starbus EV, and S EV, worth a total of Rs 1,380.24 crore.

At the same time, Mahindra & Mahindra has claimed an incentive of Rs 104.08 crore based on the sale of cutting-edge vehicle technology products worth Rs 800.59 crore in the financial year 2023-24.

Objective of PLI scheme

The main objective of this scheme is to increase the manufacturing of electric vehicle and hydrogen fuel cell related equipment in India, remove cost barriers and create a strong supply chain. The PLI scheme was approved on 15 September 2021 and the scheme will operate from FY 2023-24 to 2027-28.

Under this scheme, incentives ranging from 13% to 18% are provided for electric vehicles and hydrogen fuel cell related products. While for other advanced vehicle technology (AAT) products, this incentive ranges from 8% to 13%.

Investment and sales figures

As of September 2024, the scheme has already facilitated investments of Rs 20,715 crore, generating sales of Rs 10,472 crore.