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

IBEF:  November 12, 2021

The Union government added >100 advanced technologies, including alternate fuel systems such as compressed natural gas (CNG), 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-quadricycle, among others will additionally be covered under the PLI scheme.

Until now, the government has incorporated only two-wheelers and four-wheelers under the PLI scheme.

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

In September 2021, the Union Cabinet had approved the scheme with an outlay of Rs. 25,938 crore (~US$ 3.5 billion). The scheme intends to incentivise high-value advanced automotive technology vehicles and products such as sunroofs, adaptive frontlighting, automatic braking, tyre pressure monitoring system, and collision warning systems, among others for the automobile industry.

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

The scheme for the sector is for prevailing automotive companies along with new investors who are not in the automobile or auto component manufacturing business.

The Society of Indian Automobile Manufacturers stated it is grateful and praises the Ministry of Heavy Industries for coming out with a structured list of PLI parts and procedural details in a very duration.“Our initial opinion is that the list of AAT parts is broad-based and well — structured across themes,” stated Mr. Rahul Bharti, chief engagement officer, Siam.

The addition of e-quadricycle is an additional highlight of the notification and set to benefit firms including Bajaj Auto, M&M.

As Bajaj Auto sells the internal combustion engine powered Qute in the export markets, M&M demonstrated the battery operated quadricycle at the previous auto expo but has yet to launch it commercially.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.