Tata, Toyota, Bosch may figure on the list of PLI for auto component makers

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The Centre may soon announce a list of shortlisted companies that would receive benefits under a Production-Linked Incentive (PLI) scheme for makers of auto components.

According to people with knowledge of the development, Tata group and the local units of Toyota Motor Corp., and Bosch Group, along with Minda Industries Ltd. and Lumax Auto Technologies Ltd are likely figures in the list of applicants.

About 70 shortlisted companies could find a place in the list, the people said. A total of 115 companies have applied for financial support under the PLI scheme.

The PLI scheme for the auto and auto components industry consists of four categories: Champion OEM (except two-wheelers and three-wheelers), New Non-Automotive Investor (OEM) Company, Component Champion, New Non-Automotive Investor (Component) Company. OEM is short for an original equipment manufacturers.

Under the Component Champion category, 83 companies had filed applications.

According to the people cited above, during the due diligence process on all 83 applications by auto component makers, about 70 applications had been found suitable for incentives.

Application by companies like Tata AutoComp Systems, Toyota Kirloskar Motor Private Ltd, Motherson Sumi Systems Ltd, Sansera Engineering Ltd, Gabriel India Ltd, Minda Industries, Lumax Auto and Bosch are among them.

Last week, a high-level meeting was held in the ministry of heavy industries on the proposals. About 10 applications have been declined for assorted reasons.

The names of the shortlisted companies will be announced “very soon,” one of the people cited above said.

Tata AutoComp Systems could be one of the largest investors under the PLI scheme. It has filed an application with a proposal to invest about Rs. 2,000 crore.

Toyota Kirloskar’s proposal is to invest Rs. 600 crore. Separately, Toyota Industries has proposed an investment of about Rs. 325 crore. Sansera has proposed an investment of about Rs. 785 crore and Minda Industries about Rs. 425 crore.

Motherson Sumi proposed an investment of about Rs. 700 crore and Gabriel India about Rs. 560 crore.

The incentive payable for a Component Champion investor company ranges from 8% to 11% with an additional 5 % incentive for battery electric vehicles and hydrogen fuel cell vehicle components. An approved applicant shall be eligible for benefits for five consecutive financial years.

It is estimated that over a period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investments of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create over 750,000 jobs.