Approval to 75 auto parts makers under PLI scheme to act as catalyst: ACMA
New Delhi: The approval granted by the government to 75 auto component manufacturers for incentives under the PLI scheme will act as a catalyst in the transformational journey from a conventional industry to a mobility industry, industry body ACMA said on Tuesday.
Out of a total of 92 auto component manufacturers that applied, 75 have been approved for incentives under the production-linked incentive (PLI) scheme for five years, the Automotive Component Manufacturers Association of India (ACMA) said in a statement. The government on Tuesday said that the PLI Scheme for Automobile and Auto Components has been successful in attracting a proposed investment of Rs 74,850 crore against the target estimate of investment of Rs 42,500 crore over five years. The scheme commencing from FY22-23 has an outlay of Rs 25,938 crore.
"Today's announcement has indeed enthused the entire auto components industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry," ACMA President Sunjay J Kapur said in a statement. Thanking the government "for its generous selection of companies that will benefit from the scheme", he said a slew of policy measures announced in the recent past by the government "will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive".
Recent policy announcements include the extension of FAME-II scheme, PLI scheme on ACC battery and policy initiatives on battery-swapping and energy-as-a-service. ACMA said a total of 115 companies (auto and auto components) had filed their application. Of these, 20 have already been accorded approval for incentives in February 2022. ACMA Director-General Vinnie Mehta said the PLI scheme will not just help the component manufacturers become globally competitive but will also provide much-needed momentum to the 'Make in India' initiative.