Heavy Industries and Steel Minister HD Kumaraswamy congratulated both the companies.
The Heavy Industries Ministry has approved the PLI incentive of Rs 246 crore made by Tata Motors and Mahindra & Mahindra on Thursday. Ministry officials gave this information on Thursday. According to PTI news, the government has made a provision of PLI scheme of Rs 25,938 crore for the automobile and auto component industry. Heavy Industries and Steel Minister HD Kumaraswamy has expressed satisfaction over the progress made by auto original equipment manufacturers (OEMs) towards achieving local manufacturing through initiatives such as the PLI scheme.
Tata Motors submitted claim of Rs 142.13 crore
According to the news, Kumaraswamy congratulated Tata Motors and M&M for developing this capability and expressed confidence that more applicants will avail the PLI scheme. According to sources, Tata Motors submitted an incentive claim of around Rs 142.13 crore based on scheduled sales in FY 2023-24. Eligible sales of Tata Motors’ Advanced Automotive Technology (AAT) products include Tiago EV (electric four-wheeler), Starbus EV (electric bus) and Ace EV (electric cargo vehicle) with a total value of Rs 1,380.24 crore.
Mahindra & Mahindra’s claim
Ministry officials said Mahindra & Mahindra submitted an incentive claim of Rs 104.08 crore based on scheduled incremental sales of AAT products totaling Rs 800.59 crore for FY 2023-24, with a total investment of Rs 978.30 crore. Eligible sales of their e3W models including Treo, Treo Zor and Zor Grand amount to Rs 836.2 crore, backed by a Certificate of Domestic Value Addition (DVA) issued by the Automotive Research Association of India (ARAI).
The objective of the scheme is to increase manufacturing capabilities
The total claims of Tata Motors and Mahindra & Mahindra amount to about Rs 246 crore, which have been examined and recommended by the Project Management Agency (PMA) and later approved by the Ministry of Heavy Industries (MHI), an official said. The objective of this scheme is to increase India’s manufacturing capabilities in AAT products, overcome cost deficiencies and set up a strong supply chain. The PLI scheme, approved on September 15, 2021, is designed to operate from FY 2023-24 to FY 2027-28, with incentive disbursements scheduled from FY 2024-25 to FY 2028-29.
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