Hydrogen-Powered Vehicles Under PLI Scheme: Major Firms In

Approval obtained by 5 companies to manufacture hydrogen fuel cell vehicles under PLI scheme, including Ashok Leyland, Tata Motors

Here’s an article posted in Business Standard that talks about India’s top automobile giants and their collaboration for Hydrogen electric vehicles.

According to the article,

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• Indian government approves five companies for manufacturing hydrogen fuel cell electric vehicles under the PLI scheme for the automobile and auto component industry.
• The selected companies are Ashok Leyland, Eicher Motors, Pinnacle Mobility, Tata Motors, and Booma Innovative.

Let us take a look into the PLI Scheme, and see how it is beneficial for India.

The Production Linked Incentive (PLI) scheme is a government initiative aimed at boosting the production of electric vehicles and hydrogen fuel cell vehicles in India. The scheme was launched in September 2021 and is designed to enhance the country’s manufacturing capabilities in these sectors. Here are the key details and benefits of the PLI scheme for hydrogen fuel cell vehicles:

Key Components of the PLI Scheme

1. Champion OEM Incentive Scheme: This scheme is applicable to Original Equipment Manufacturers (OEMs) who manufacture vehicles. It is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
2. Component Champion Incentive Scheme: This scheme is for companies that manufacture auto components. It covers various components, including those for hydrogen fuel cell vehicles.

Eligibility Criteria

To be eligible for the PLI scheme, companies must meet certain criteria:

• Champion OEM Incentive Scheme:
  • Revenue from automotive and/or auto component manufacturing: Minimum Rs 10,000 crore.
  • Global investment in fixed assets: Rs 3,000 crores.
  • Group company(ies) must satisfy the eligibility criteria.
• Component Champion Incentive Scheme:
  • Revenue from auto component manufacturing: Minimum Rs 500 crore.
  • Global investment in fixed assets: Rs 150 crores.
  • Group company(ies) must satisfy the eligibility criteria.

Benefits and Incentives

The PLI scheme offers various incentives to eligible companies:

• Champion OEM Incentive Scheme:
  • Incentives ranging from 13% to 16% of the determined sales value, depending on the sales value achieved.
  • Additional 2% incentive for cumulative determined sales value of Rs 10,000 crore over five years.
• Component Champion Incentive Scheme:
  • Incentives ranging from 8% to 11% of the determined sales value, depending on the sales value achieved.
  • Additional 5% incentive for cumulative determined sales value of Rs 1,250 crores over five years.

Impact and Benefits

The PLI scheme is expected to have significant benefits for the auto sector and the economy:

• Job Creation: The scheme is estimated to generate 7.5 lakh jobs over five years.
• Investment: The scheme aims to attract fresh investments of over Rs 42,500 crores, leading to incremental production of over Rs 2.3 lakh crore.
• Competitiveness: The scheme will enhance India’s manufacturing capabilities and competitiveness in the global market.
• Environmental Benefits: The focus on electric and hydrogen fuel cell vehicles will contribute to a cleaner environment and sustainable mobility.

Timeline and Implementation

The PLI scheme will be implemented over a period of five years, starting from FY 2022-2023. The scheme will be monitored and evaluated annually to ensure its effectiveness and progress towards its goals. Overall, the PLI scheme is a significant initiative by the Indian government to boost the production of electric vehicles and hydrogen fuel cell vehicles, create jobs, and enhance the country’s manufacturing capabilities.