Govt includes CNG, LNG, 98 other advanced tech under auto PLI scheme

The Centre has included more than 100 advanced technologies, including alternate fuel systems such as compressed natural gas (CNG), alternate fuel systems, among others under the production-linked incentive (PLI) scheme for the automobiles.

Bharat Stage VI compliant flex fuel engines, electronic control units (ECU) for safety, advanced driver assist system, e-quadricyle, among others will also be covered under the scheme.

The scheme aims to boost manufacturing capability of the automobile sector, including the electric and hydrogen fuel cell vehicles.

The Union Cabinet has in September approved the scheme with an outlay Rs 25,938 crore. The scheme aims to incentivize high-value advanced automotive technology vehicles and products such as sunroofs adaptive front lighting, automatic braking, tyre pressure monitoring system, and collision warning systems, among others for the auto industry.

The incentive structure aims to encourage industry to make fresh investments for indigenous global supply chains of advanced automotive technology products.

The scheme for the auto sector is open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business.

Auto industry body Siam (Society of Indian Automobile Manufacturers) said it is thankful and compliments the Ministry of Heavy Industries for coming out with a structured list of PLI parts and procedural details in very short time.

“Our preliminary observation is that the list of AAT parts is broad-based and well – structured across themes. SIAM members will study in detail both the list and the procedure and discuss with MoHI with feedback, if any,” said Rahul Bharti, chief engagement officer, Siam.

The inclusion of e-quadricyle is another highlight of the notification and set to benefit companies including Bajaj Auto, Mahindra and Mahindra. While Bajaj Auto already sells the internal combustion engine powered (ICE) Qute in the export markets, Mahindra showed the battery operated quadri at the last auto expo but has yet to launch it commercially.

Till now the government has included only two wheelers and four wheelers under the scheme.

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