Auto PLI: 18% incentive will help overcome cost disability, says DHI secy

The government yesterday, March 15, granted approval to 75 companies for incentives under the production linked incentive (PLI) scheme for automobile and related component industry, CNBC-TV18’s Parikshit Luthra caught up with Arun Goel, secretary of the Department of Heavy Industries (DHI) to learn more.

“When we formulated the scheme, we expected the investment to the tune of Rs 42,500 crore and are happy to inform you that we have finalized 75 component companies and 20 original equipment manufacturer (OEM) companies. So a total of 95 auto components and auto OEM companies are going to invest around Rs 75,000 crore,” said Goel.

He further said that the Indian auto industry is very strong with regard to volumes. “These investments will make our industry produce with at least 50 percent of local value addition, which will help them achieve volume,” Goel said.