Tata Motors and Mahindra get certificate for PLI payment, government extends scheme
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New Delhi : India’s automakers Tata Motors and Mahindra & Mahindra have received certificates for payment under the PLI (Production Linked Incentive) scheme. This means that both these automakers will soon be able to avail incentives through the Central Government’s Production-Linked Incentive (PLI) scheme. Along with this, the Central Government has announced to extend the deadline of PIL scheme for one more year till March, 2028. Union Minister Mahendra Nath Pandey has announced that the PLI scheme of Rs 25,938 crore for the auto sector has been extended after review.
Two more companies had applied
According to media reports, apart from Tata Motors and Mahindra & Mahindra, two more automakers had applied to obtain the certificate for PLI payment. The certificate is important for car manufacturers to get incentives from the Centre. The government expects 23 more companies to apply for certification by next month. Toyota Motor, Ola Electric and TVS Motor are among the other auto companies that have applied for the certificate for the PLI scheme. In all, out of 23 models applied so far, only 12 have been approved.
Four models of Tata Motors and eight of Mahindra approved
Tata Motors has got approval for four of its models, which will be eligible under the PLI scheme. Eight models of Mahindra & Mahindra are approved for PLI payment. Both had applied for 10-10 models. However, the names of these models have not yet been officially disclosed by both these companies or the government. Tata Motors had included the Tiago EV in its electric vehicles to join the scheme.
What is PLI scheme
Let us tell you that for the auto sector in India, the Product-Linked Incentive Scheme has been implemented for the scheduled sale of Advanced Automotive Technology (AAT) products. This scheme, which started from April 2022, was earlier to end in 2027. Now the central government has extended it by one year and has fixed its deadline till 2028. The objective of the scheme is to promote local manufacturing with main focus on electric vehicles.
2 parts of PLI
The PLI scheme has been introduced in two parts. The first is Champion OEMs, which include car manufacturers who will produce electric or hydrogen-powered vehicles. Auto giants like Hyundai Motor, Bajaj Auto, Suzuki and Hero MotoCorp have qualified for this. The second is Component Champions, which will include manufacturers of high-value and high-tech components.
SIAM welcomes expansion of PLI scheme
On the other hand, the Society of Indian Automobile Manufacturers (SIAM) on Wednesday welcomed the decision to extend the Production Linked Incentive (PLI) scheme for the vehicle sector by one year. In a statement, SIAM president Vinod Agarwal thanked the Ministry of Heavy Industries for the decision. He said that the government has accepted the suggestions of the industry for the expansion of the vehicle PLI (Production Linked Incentive) scheme to the tune of Rs 25,938 crore. He appreciated the ministry for “quarterly disbursement of financial incentives, provision of more testing agencies for faster clearances and extension of PLI benefit by one year on the request of the industry”. After this extension, the scheme, which was originally from 2022-23 to 2026-27, will now be effective till 2027-28.
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