INDIAPOSITIVE
ELITE MEMBER
- Joined
- Sep 20, 2014
- Messages
- 9,318
- Reaction score
- -28
- Country
- Location
incentives worth ₹ 26,058 crore to be extended to industry over five years
The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for the auto sector and drone industry to promote advanced automotive technologies, including clean energy vehicles, with incentives worth ₹26,058 crore to the industry over five years.
The statement said that the auto sector could attract fresh investments of over ₹42,500 crore in five years and incremental production of over ₹2.3 lakh crore with the introduction of the PLI scheme. It is likely to create additional employment for over 7.6 lakh people, it added.
With an allocation of ₹ 120 crore spread over three financial years, the PLI scheme for the drone industry is expected to bring fresh investments of over ₹ 5,000 crore and incremental production of over ₹1,500 crore.
“PLI Scheme for the automotive sector along with already launched PLI for Advanced Chemistry Cell (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) Scheme (₹10,000 crore) will give a big boost to manufacture of electric vehicles,” the release said.
While the government had initially announced an outlay of ₹ 57,043 crore for the auto sector under the PLI scheme, it was subsequently brought down to ₹26,058 crore .
The PLI Scheme for auto is open to existing automotive companies and new investors who are currently not in the automobile or auto component manufacturing business. The scheme has two components.
The first component called the Champion OEM Incentive Scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
The second component, the Component Champion Incentive scheme, is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles and tractors.
“The revised focus of PLI scheme on alternative fuels, electric vehicles and utilisation of advanced technological innovation, will help the industry move faster towards the future technologies... The pandemic has taught us the essence of Aatmanirbharta in every aspect possible. Hence, this is a significant push by the government for its workforce, organisations (OEMs), and the consumers to seek competitive, diverse, and climate-conscious mobility solutions and a progressive India,” said Venu Srinivasan, Chairman, TVS Motor Company.
The scheme will enable India to leapfrog to environmentally cleaner electric vehicles and hydrogen fuel cell vehicles, the release added.
The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for the auto sector and drone industry to promote advanced automotive technologies, including clean energy vehicles, with incentives worth ₹26,058 crore to the industry over five years.
The statement said that the auto sector could attract fresh investments of over ₹42,500 crore in five years and incremental production of over ₹2.3 lakh crore with the introduction of the PLI scheme. It is likely to create additional employment for over 7.6 lakh people, it added.
With an allocation of ₹ 120 crore spread over three financial years, the PLI scheme for the drone industry is expected to bring fresh investments of over ₹ 5,000 crore and incremental production of over ₹1,500 crore.
“PLI Scheme for the automotive sector along with already launched PLI for Advanced Chemistry Cell (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) Scheme (₹10,000 crore) will give a big boost to manufacture of electric vehicles,” the release said.
While the government had initially announced an outlay of ₹ 57,043 crore for the auto sector under the PLI scheme, it was subsequently brought down to ₹26,058 crore .
The PLI Scheme for auto is open to existing automotive companies and new investors who are currently not in the automobile or auto component manufacturing business. The scheme has two components.
The first component called the Champion OEM Incentive Scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.
The second component, the Component Champion Incentive scheme, is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles and tractors.
“The revised focus of PLI scheme on alternative fuels, electric vehicles and utilisation of advanced technological innovation, will help the industry move faster towards the future technologies... The pandemic has taught us the essence of Aatmanirbharta in every aspect possible. Hence, this is a significant push by the government for its workforce, organisations (OEMs), and the consumers to seek competitive, diverse, and climate-conscious mobility solutions and a progressive India,” said Venu Srinivasan, Chairman, TVS Motor Company.
The scheme will enable India to leapfrog to environmentally cleaner electric vehicles and hydrogen fuel cell vehicles, the release added.
