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Ministry targets July 2024 for certification of 85 Applicants in automotive PLI scheme
Industry News- Jan 18,24
The Ministry of Heavy Industries (MHI) plans to initiate the disbursement of incentives under the scheme in the financial year 2025.
The Ministry of Heavy Industries, responsible for executing the government's Production-Linked Incentive (PLI) scheme for advanced automotive technologies, has set a target for all 85 applicants to obtain certification against the scheme's Domestic Value Addition (DVA) criteria by July 2024, according to Secretary Kamran Rizvi. Rizvi expressed confidence in the scheme's proper implementation, stating that their goal is to ensure certification for all applicants by the specified deadline.
Additionally, the ministry's Additional Secretary, Hanif Qureshi, indicated the likelihood of convening a meeting for component applicants aiming to facilitate DVA applications for automotive suppliers that have not yet secured any certifications. Qureshi provided statistics on DVA certification applications, noting that eight original equipment manufacturers (OEMs) have applied for certification for 39 products. Approvals have been granted for 22 products by three OEMs, while 11 certifications are still in process. For automotive component suppliers, 25 product approvals are under process for DVA certification, with no approvals granted so far.
The Ministry of Heavy Industries (MHI) plans to initiate the disbursement of incentives under the scheme in the financial year 2025. However, the process for incentive claims by approved applicants is yet to be determined. Suman Mishra, CEO of Mahindra Last Mile Mobility, emphasised the need for the government to swiftly finalise the Standard Operating Procedure (SOP) for claiming incentives, despite having 10 approvals in place for their vehicles.
Participants in the automotive PLI scheme must demonstrate a minimum of 50% domestic value addition in their product and supply chain to qualify for incentives. This stringent assessment is conducted by government-affiliated testing agencies such as the Automotive Research Association of India (ARAI), monitored by the Comptroller and Auditor General of India to ensure compliance with the scheme's rules.
Out of the selected beneficiaries, only Tata Motors and M&M have received localisation certifications from ARAI for a range of products with electric powertrains. Incentives will be awarded based on actual sales evidence and audits of investments made in advanced automotive technologies.
While the Infrastructure Leasing & Financial Services (IL&FS) subsidiary IFCI manages the scheme's implementation, an SOP for DVA has been released to guide beneficiaries. Union Minister for Heavy Industries Mahendra Nath Pandey emphasised the government's commitment to monitoring and ensuring compliance, conducting periodic visits to approved beneficiary companies' manufacturing plants and quarterly reviews of the scheme's progress.
Source: Mint
Ministry of Heavy Industries
Kamran Rizvi
Domestic Value Addition
Production-Linked Incentive
Hanif Qureshi
Suman Mishra
Automotive Research Association of India
Leasing & Financial Services
Mahendra Nath Pandey
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