Auto component maker Bosch not yet eligible for PLI scheme: Government official

Auto components manufacturer Bosch has not met the minimum 50 per cent domestic value addition (DVA) requirement for the auto production linked incentive (PLI) scheme yet, disbursal for which will start from October.

“Companies who have achieved 50 per cent DVA will be getting incentives as per their claims under the PLI scheme, but there are some companies like Bosch, which are still not able to achieve the minimum DVA of 50 per cent, so they will not be eligible for the same. The last date for claiming their incentives is September 30 and disbursal for the claims will start from October,” a senior official at Ministry of Heavy Industries (MHI) told businessline.

He said that Bosch has achieved a DVA of only 40-45 per cent till now, and so is not yet eligible for the PLI scheme. A mail sent with queries to Bosch did not solicit any response.

• Also read: Bosch India to focus on ramping up more localization

“They are still importing a lot of products/ spare parts from outside India. Our concern is, they should achieve the minimum 50 per cent DVA – and it should be from within the country. Sometimes, companies buy parts from an Indian vendor who imports the components from outside India, and claim that they buy from an Indian vendor so it should be counted as Indian. But, we do not allow such a deal,” the official noted.

There are seven companies who have been recently approved for the claims for achieving 50 per cent DVA. These include Mahindra & Mahindra (M&M), Tata Motors, Bajaj Auto, Ola Electric Technologies, Minda, and TVS Motor Company.

The Cabinet in September 2021 had approved the PLI-Auto Scheme with a budgetary outlay of ₹25,938 crore for a period of five years -- FY2022-23 to FY2026-27, which was extended by another year till FY2027-28, as announced by the government in January this year. The government has also capped a total incentive per entire group company(ies) at ₹6,485 crore.

According to the scheme, a minimum 50 per cent DVA will be required and the testing agency of Ministry of Heavy Industries (MHI) will certify DVA in the eligible product.

A total of 115 companies had filed their application under the scheme for Automobile and Auto Component industry, from which the government had approved 95 companies under the Champion OEM (original equipment manufacturer) Incentive scheme and the Component Champion incentive scheme.

The companies include Ashok Leyland, Eicher Motors, Ford India, Hyundai Motor India, Kia India, Mahindra & Mahindra (M&M), Suzuki Motor Gujarat, Tata Motors, Bajaj Auto, Hero MotoCorp, Ola Electric, TVS Motor, Bosch Automotive Electronics, Bosch Chassis Systems, Bosch Limited, Asahi India Glass, Cummins Technologies India, Delphi-TVS Technologies, Denso, Lucas-TVS, Lumax Auto, Minda Corporation, Minda Industries, Motherson Sumi Systems and Sona BLW Precision Forgings, etc.

• Also read: Economic Survey says schemes like PLI, FAME-II and ACC battery storage helped auto industry grow

The disbursement mechanism will incorporate pre-approval of Advanced Automotive Technology (AAT) vehicles and AAT components by MHI through its testing agencies. Subsequently, the applicants can submit their claim for incentive through the scheme portal.