Question : PLI Scheme

(a) whether the Government has launched Productivity Linked Incentive (PLI) Scheme for Automobile & Auto components, if so, the details thereof;

(b) whether PLI Scheme for auto sector will bring fresh investments and incremental production, if so, the details thereof;

(c) whether the Government has approved the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”, if so, the details thereof; and

(d) the other steps being taken by the Government for successful implementation of the PLI scheme for automobile sector?

THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI KRISHAN PAL GURJAR)

(a) & (b): Yes, Sir. Government has approved 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 Production Linked Incentive (PLI) Scheme for Automobile and Auto components proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain. Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology products. It will also generate employment. This scheme will facilitate the Automobile Industry to move up the value chain into higher value added products. It is estimated that this scheme will attract large investment worth Rs. 42,500 crores and incremental production of Rs. 2,31,500 crore over five-year period.

(c): Yes Sir, the Government on 12th May, 2021 approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country. The total outlay of the scheme is Rs. 18,100 Crore for a period of 5 years. The scheme envisages to

P.T.O.
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establish a competitive ACC battery manufacturing set up in the country (50 GWh). Additionally, 5GWh of niche ACC technologies is also covered under the Scheme. The scheme proposes a production linked subsidy based on applicable subsidy per KWh and percentage of value addition achieved on actual sales made by the manufacturers who set up production units. This scheme will facilitate reduction of import dependence of ACC battery.

(d): Online portal with the URL; https://pliauto.in has been developed for administering the PLI Scheme for Automobile and Auto Component Industry including submission of online application. Scrutiny & Appraisal for all online applications will be done by Project Management Agency (PMA). Based on fulfillment of basic eligibility criteria, approval for applicants will be granted by Ministry of Heavy Industries.
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