“The Ministry of Heavy Industries (MHA) vide its letter dated March 22, 2022 has approved the application submitted by the Company under Component Champion Incentive Scheme of the PLI Scheme,” the company said in a release.
The Centre’s Production-Linked Incentive scheme offers sops to companies based on the sales value of the components. According to a PIB release, companies selected for incentives under the scheme would stand to get 8-11% of the Determined sales value, with the floor fixed at Rs 250 crore in a year. Companies making components for battery-operated vehicles stand to gain 5% more.
To qualify for the investments, the company should invest a minimum of Rs 250 Crore over 5 years, with at least Rs 100 crore in the initial two years. According to the release, SFL would set aside Rs 350 crore out of its investment chest of Rs 2,000 crore to make Advanced Automotive Tech components for eVs and Internal Combustion Engine vehicles.
Arathi Krishna, Managing Director, said: “The PLI scheme will benefit the sector in multiple ways by increasing localisation and making India an export hub in the global auto supply chain.”
The Centre had announced the PLI Scheme for automobiles and components in September last year. The government estimated that incentives would spur fresh investments to the tune of Rs 42,500 crore over five years, according to a release.
The company, which supplies auto components for global automobile manufacturers such as General Motors, has said it has won orders from global OEMs under its eV programme.
