: PLI Scheme for Automobile & Auto Components Industry will open fresh investments of Rs. 42,500 #FinanceIndia #StockMarketNEWS New Delhi, Oct 11 (KNN) The Government envisages to overcome the cost disabilities

@StockMarketNEWS Mon 11 Oct, 2021

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PLI Scheme for Automobile & Auto Components Industry will open fresh investments of Rs. 42,500 #FinanceIndia #StockMarketNEWS
New Delhi, Oct 11 (KNN) The Government envisages to overcome the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India, with the PLI Scheme for Automobile & Auto components. Its guidelines have been notified in the Gazette of India on 23. 09. 2021.

It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over INR 42,500 crore, incremental production of over INR 2. 3 lakh crore and will create additional employment opportunities of over 7. 5 lakh jobs.

Under this scheme, the incentive payable for Component Champion and New Non-Automotive Investor company ranges fr0m 8% to 11%.

The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products.

The PLI Scheme for Auto sector is open to existing automotive companies as well as new Non-Automotive investor companies (who are currently not in automobile or auto component manufacturing business). The scheme has two components viz. , Champion OEM Incentive Scheme and Component Champion Incentive Scheme.

The scheme for Automobile and auto components will be implemented over a period of five years starting fr0m FY 2022-2023.

-- An approved applicant shall be eligible for benefits for 5 consecutive Financial Years.

-- Financial Year 2019-20 shall be treated as the Base Year for calculation of Eligible sales.

-- An existing automotive company or its Group company (ies) will need to meet the Basic Eligibility criteria to receive incentives. New Non-Automotive Investor company or its Group company (ies) (who are currently not in automobile or auto component manufacturing business) are required to meet the Global Net worth criteria of INR 1000 crore. The Basic Eligibility criteria are based on audited financial statements for the year ending 31. 03. 2021. Besides the above eligibility criteria, Minimum New Cumulative Domestic Investment after 01. 04. 2021 has to be achieved by both the existing automotive companies as well as the New Non-Automotive investor company or its Group company (ies). The Champion OEMs (except 2W&3W) and New Non-Automotive Investor (OEM) company or its Group company (ies) have to invest INR 2,000 crore over a period of 5 years. Similarly the Champion OEM (2W & 3W), Component Champion and New Non-Automotive Investor (Component) company or its Group company(ies) have to invest INR 1,000 crore, INR 250 crore and INR 500 crore respectively, as detailed along with the Basic Eligibility Criteria at Table-I.

-- In case the company fails to meet the cumulative domestic investment condition in any given year, it will not receive any incentive for that year even if the threshold for determined sales value is achieved.