MHI Launches Two PLI Schemes for Automobile and Electric Vehicle Battery Makers
Opportunity India Desk
Feb 10, 2023 -
2 min read
The Union Minister of State for Heavy Industries, Krishan Pal Gurjar said that MHI has launched two Production Linked Incentive (PLI) Schemes, namely PLI Scheme for Automobile and Auto Component Industry, and PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage.
The minister, in a written reply in lok sabha today, said, “With the vision of Atma Nirbhar Bharat and to make India as a self-reliant nation, MHI has launched PLI Scheme for Automobile and Auto Component Industry, and PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage with the objective of Domestic Value Addition (DVA) in the products manufactured in India.”
PLI Scheme for Automobile and Auto Component Industry
This scheme is aimed at boosting India’s manufacturing capabilities in the automobile and the auto components sector. Government has approved this PLI Scheme with a total budgetary outlay of INR 25,938 crores over a period of 5 years. This scheme will generate direct employment for 1.5 lakhs and expected cumulative increase in eligible sales are INR 2,31,500 Cr.
PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage
This scheme hones in on enhancing the country’s manufacturing capabilities for manufacturers of Advance Chemistry Cell (ACC) in India. With a total budget of INR 18,100 Cr, the government aims to facilitate setting up manufacturing facilities for Advance Chemistry Cell (ACC) in India. This scheme is for a period of seven years (including two years of gestation period). Total estimated investment to be made by the beneficiary firms is of INR 27,000 crore. The scheme will generate employment of 2.7lakhs.
“In PLI Auto, a minimum of 50 percent DVA will be required to get the incentive. In the PLI ACC scheme, the beneficiary firms are required to achieve a minimum of 25 percent DVA by end of second Year and 60 percent by the end of 5th Year of the scheme”, added the minister.
