Moving Up The Value Chain

75 auto component manufacturers of the 92 who filed under the Components Champion Incentive scheme have earned their approvals. Ashish Bhatia shares the details on companies that edge past peers with this milestone feat.

- Ashish Bhatia

The Production Linked Incentive (PLI) scheme or the Components Champions Incentive Scheme for the auto components manufacturers had 92 companies filing their applications to avail incentives under the Rs.25,938 crore total outlay of the scheme. This was till the set deadline on January 09, 2022. The companies had applied to be eligible for incentives applicable under the scheme for the determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 01, 2022, onwards for the next five years. The Ministry of Heavy Industries (MHI) processed the applications of which 75 applicants have gained approvals, a milestone feat that could help them edge past peers with higher localisation per product. Sunjay J Kapur, President, ACMA, and Chairman at Sona Comstar commented, "The announcement has indeed enthused the entire auto component industry and will be a catalyst in our transformational journey from a conventional industry to a mobility industry. We are indeed very thankful for the Government's generous selection of companies that will benefit from the scheme.” “That apart, a slew of policy measures announced in the recent past including the extension of the FAME-II scheme, the PLI on ACC battery, the policy initiative on battery swapping and energy as service, among others, will create a new paradigm of technological excellence in the automotive supply chain in India to make it globally competitive," he opined. Applications for the Component Champion Incentive scheme were processed separately from the Champion OEMs who gained prior approvals.