To boost production, the government approved a new production-linked incentive (PLI) plan for the auto sector worth INR 260 Billion today in order to stimulate the manufacture of electric and hydrogen fuel vehicles. According to government projections, the PLI scheme will create up to 7.5 lakh jobs in the automotive industry.
The Cabinet also approved a PLI plan for drones and drone components, which is estimated to attract roughly INR 50 Billion in investment over the next three years. Manufacturers would receive INR 1.2 Billion over the next three years as part of the scheme.
The PLI scheme for the auto sector along with already launched PLI for Advanced Chemistry Cell (INR 181 Billion) as well as Faster Adaption of Manufacturing of Electric Vehicles (FAME) scheme (Rs 10,000 crore) will provide a big boost to manufacture electric vehicles.
Last year, the government had announced the scheme for the automobile and auto components sector with an estimate of ₹ 570.43 Billion, for a period of five years. The Cabinet has finalized the scheme for the sector to ₹ 259.38 Billion for three years period crore to shift focus on hydrogen fuel vehicles and electric vehicles.
The auto component segments that are covered under the PLI scheme include electronic power steering system, automatic transmission assembly, sensors, sunroofs, supercapacitors, adaptive front lighting, tyre pressure monitoring system, automatic braking, tyre pressure monitoring system, and collision warning system.
The PLI scheme for the auto sector is part of the overall production-linked incentives (PLI Schemes) announced for 13 sectors in the Budget 2021-22 with an outlay of ₹ 1.97 Trillion.
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