After receiving over Rs 45000 crore commitment from the vehicle makers and additional Rs 17,500 to Rs 20,000 crore minimum investment has been earmarked by over 70 auto parts makers.
The names of shortlisted firms are likely to be announced on Tuesday by the Government of India.
In the component sector 83 companies had applied of which 70 companies are likely to have been shortlisted including Minda Industries, Bharat Forge, Tata Autocomp, Ceat, Sandhaar Technologies, Sona Comstar, Bosch amongst others, said people in the know.
A minimum investment cap for auto component companies over 5 years was Rs 250 crore and for new-age component companies was Rs 500 crore
“Apart from catering to the growing domestic market, there is an increased traction for sourcing out of India as part of global Automakers China plus strategy. This can be clearly seen from the rising exports numbers of auto-components from India and this is set to accelerate further,” said a senior executive of the auto component industry.
It was estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over Rs 42,500 crores, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Further this will increase India’s share in global automotive trade.
The investment commitment is much more and it is likely to beat the internal targets on job creation and production output.
The government has already received investment proposals to the tune of Rs 45,016 crore from the 20 approved applicants of PLI auto scheme. They include Hyundai Motor India, Suzuki Motor Gujarat, Ashok Leyland, Mahindra & Mahindra (M&M), Hero MotoCorp, Bajaj Auto and Ola Electric Technologies. The investment proposals received from OEMs alone have surpassed the overall investment of Rs 42,500 crore the government had envisaged from auto and auto component makers.
