Leading supplier of critical, high precision components to Tier-1s and aftermarket companies across the globe, Sundram Fasteners, has received the approval under Component Champion Incentive Scheme of the PLI Scheme.
A communication from the company said that the Ministry of Heavy Industries (MHI), vide its letter dated March 22, 2022, has approved the application submitted by the company.
The PLI Scheme aims at building a robust supply chain in areas of Advanced Automotive Technology (AAT) components. The eligibility criteria require a minimum investment of INR 250 crore over five years with at least INR 100 crore in the initial two years.
Arathi Krishna, Managing Director,said the PLI scheme will benefit the sector by increasing localisation and making India an export hub in the global auto supply chain. “We are setting aside around INR 350 crore for the manufacture of advanced automotive technology components for the next five years,” she added.
Out of capital expenditure amounting to INR 2,000 crore planned over the next five years, the company has a projected investment of about INR 350 crore to manufacture advanced automotive technology components like powertrain sub-assemblies for electric select internal combustion engine vehicles. The company has secured firm orders from global OEMs to supply these components under their EV programmes, the company added.