The Union Cabinet on Wednesday accepted a Rs. 26,058 crore manufacturing linked incentive (PLI) scheme for auto, auto-components and drone industries to reinforce India’s manufacturing capabilities, Union Minister Anurag Thakur mentioned on Wednesday.
The PLI scheme will incentivise the emergence of superior automotive applied sciences’ world provide chain in India.
Incentives price Rs. 26,058 crore will likely be offered to trade over 5 years, the minister informed reporters after the Cabinet assembly.
It is estimated that over a interval of 5 years, the PLI scheme for the car and auto parts trade will result in contemporary funding of over Rs. 42,500 crore, incremental manufacturing of over Rs 2.3 lakh crore and can create further employment alternatives of over 7.5 lakh jobs, Mr. Thakur mentioned.
The PLI scheme for car and drone industries is a part of the general announcement of PLI schemes for 13 sectors made earlier through the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
The scheme for the auto sector envisages overcoming the price disabilities to the trade for the manufacture of superior automotive expertise merchandise in India.
The incentive construction will encourage trade to make contemporary investments for the indigenous world provide chain of Advanced Automotive Technology merchandise, Mr. Thakur mentioned.
The scheme for the auto sector is open to current automotive firms in addition to new traders who’re at the moment not in car or auto element manufacturing enterprise.
The scheme has two parts – Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, relevant on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments, the minister mentioned.
The Component Champion Incentive scheme is a ‘sales value linked’ scheme, relevant on Advanced Automotive Technology parts of autos, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, automobile aggregates of 2-Wheelers, 3-Wheelers, passenger autos, industrial autos and tractors.
This PLI scheme for automotive sector together with the already launched PLI scheme for Advanced Chemistry Cell (Rs 18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (Rs. 10,000 crore) will allow India to leapfrog from conventional fossil fuel-based car transportation system to environmentally cleaner, sustainable, superior and extra environment friendly Electric Vehicles (EV) based mostly system.
Further the PLI scheme for the drones and drone parts trade addresses the strategic, tactical and operational makes use of of this revolutionary expertise.
A product-specific PLI scheme for drones with clear income targets and a concentrate on home worth addition is essential to constructing capability and making these key drivers of India’s development technique.
The scheme will over a interval of three years, result in investments price Rs 5,000 crore, a rise in eligible gross sales of Rs 1500 crore and create further employment of about 10,000 jobs.
#Note-Author Name – PTI