Component Champion Incentive Scheme to Identify and Incentivize Auto Component Champions with Budget Outlay of Rs. 25,938 Crs
· Two Segments of OEM and Components Listed
Government has initiated the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry in India for enhancing India’s Manufacturing Capabilities for Advanced Automotive Products with a budgetary outlay of Rs. 25,938 crores over a period of five years. The Scheme has two components namely, Champion OEM Incentive Scheme & Component Champion Incentive Scheme.
The ‘Component Champion’ Incentive scheme is aimed at identifying and incentivizing Auto component champions that can achieve global scale of operations and become ‘Automotive Champions’ for the auto-component manufacturing sector related to Advanced Automotive Technology. The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on preapproved Advanced Automotive Technology components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors including automobile meant for military use and any other Advanced Automotive Technology components prescribed by MHI depending upon technical developments.
Battery Electric Vehicles and Hydrogen Fuel Cells component are being provided incentives under PLI Scheme for Automobile and Auto Components.
This information was given by the Minister of State for Heavy Industries Krishan Pal Gurjar in a written reply in the Rajya Sabha on 3 December 2021.