Tata Motors, M&M, three others may raise Rs 2k cr and PLI claims
Tata Motors
, Mahindra & Mahindra (M&M),
Bajaj Auto
,
Ola Electric Technologies
and
TVS Motor Company
could raise claims totalling more than ₹2,000 crore this fiscal year under the
Production Linked Incentive
(PLI) scheme for automobiles, according to a government assessment.
Officials said these claims are for investment and incremental sales goals achieved in the fiscal year ended March 31.
Bajaj Auto is expected to make the highest claim of ₹630 crore, followed by Tata Motors at ₹409 crore, and Ola Electric at ₹380 crore, officials said. TVS Motor and M&M could raise claims of ₹330 crore and ₹283 crore, respectively.
Despite the substantial claims, it would still fall short by ₹702 crore from the FY26 Budget estimates.
"Companies have more time to seek claims," a senior official told ET, noting beneficiaries can submit applications till September.
Heavy industries minister HD Kumaraswamy reviewed the PLI scheme's performance on Thursday. He directed the ministry to ensure handholding of applicants on operational aspects, claims, and ensuring domestic value addition (DVA), according to officials.
"The scheme has so far attracted significant domestic investments worth ₹29,576 crore until March 2025," Kumaraswamy said in a statement after the review.
"Going forward, we are committed to regular industry workshops, faster claim disbursals, and robust support to stakeholders paving the road for a self-reliant and globally competitive auto sector," he added.
Officials said claims worth ₹322 crore were released under the scheme goals achieved in FY24 to
Tata Motors
, M&M, Ola Electric, and
Toyota Kirloskar Auto Parts
(TKAP). This is despite more than 80 companies initially getting approvals under the scheme.
The Centre approved the PLI for automobiles in September 2021 with a ₹25,938 crore budgetary outlay. The scheme aims to overcome cost disabilities of the domestic industry for manufacturing Advanced Automotive Technology (AAT) products in India.
The industry needs to make fresh investments for indigenous manufacturing of AAT products and create jobs to claim incentives.
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