New Delhi, Jan 11 (IANS): A total of 115 companies have filed applications under the Production Linked Incentive (PLI) scheme for automobile and auto component industry in India.

Incentives are available under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) to be manufactured in India from April 1, 2022 onwards for a period of five years, the Ministry of Heavy Industries said in a statement.

The government has approved the PLI scheme for the automobile and auto component industry to enhancing India's manufacturing capabilities for advanced automotive products with a budgetary outlay of Rs 25,938 crore.

The scheme proposes financial incentives to boost domestic manufacturing of AAT products and attract investments in the automotive manufacturing value chain.

Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products.

The PLI scheme for the auto sector will incentivise high value AAT vehicles and products and envisaged to overcome the cost disabilities to the industry for manufacturing of AAT products in India.

The incentive structure will encourage the industry to make fresh investments in indigenous supply chain/deep localisation of AAT products.

The PLI scheme for automotive sector, along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient EV-based system, the statement said.