PLI churns over 28k jobs in auto sector

Steering Growth

• 115 companies filed
• 120 applications under PLI-Auto
• Out of the 85 applicants, 18 applicants were approved for the Champion OEM Incentive Scheme
• 67 applications for Component Champion Incentive Scheme
• 2 auto OEM companies were approved for both parts of the scheme

New Delhi: The Production-Linked Incentive (PLI) Scheme for automobile and auto components (PLI-Auto) has created 28,515 jobs. As per the estimates by the applicants, the proposed employment generation was 1.48 lakh, official sources told Bizz Buzz.

The central government has so far approved 85 applicants to avail the benefits of PLI-Auto. As many as 115 companies had filed 120 applications under PLI-Auto. Out of the 85 successful applicants, 18 applicants have been approved for the Champion OEM Incentive Scheme and 67 for the Component Champion Incentive Scheme.

Two auto OEM companies were approved for both parts of the scheme.

In a bid to boost the auto sector, the government extended the tenure of PLI-auto by one year. Now, it will remain in force till 2027-28.

The scheme has been very successful in attracting investment, the officials said. There are already proposed investments worth Rs67,690 crore, against the target estimate of investment Rs42,500 crore over its five-year period. Of the proposed investment, almost one-fifth or Rs13,037 crore was already invested by the end of 2023.

As per the estimates by applicants, of the proposed employment generation of 1.48 lakh, already 28,515 jobs have been created.

The government had launched PLI-Auto in September 2021 to promote cleaner mobility and develop an ecosystem of innovation and technology. It is being executed by the Ministry of Heavy Industries (MHI). The government has earmarked Rs 25,938 crore for PLI-Auto.

Mahindra & Mahindra, Tata Motors, and Ola Electric were among the early applicants, the sources said, adding that they have already received domestic value addition (DVA) certification from testing agencies for their 22 variants of advanced automotive technology (AAT) products.

Mahindra & Mahindra is the 1st company to meet the DVA criteria in the three-wheeler category, while Tata Motors is the first company to meet the DVA criteria for both four-wheeler and bus categories. Ola Electric is the first two-wheeler company for the same.