PLI scheme for auto sector approved

On Wednesday, the Cabinet gave a green signal to the production-linked incentive (PLI scheme) for the auto sector with an outlay of Rs 26,000 crore. These incentives will vary between 8-13% subject to the determined sales value of the company. Electric vehicle makers and hydrogen fuel cell vehicle makers in the country will get an additional 5% incentive. Champion companies in the automobile sector will have to make investments to the tune of Rs 2,000 crore over a period of 5 years. Under the scheme, two- and three-wheeler makers will have to make an investment worth Rs 1,000 crore, while component makers will need to make Rs 500 crore investment.

Welcoming the scheme,  Parikshit Luthra, Vipin Sondhi, vice-President of SIAM, said: “I think the PLI scheme is inclusive because it provides support to both OEMs and component manufacturers. The focus of the scheme is on EVs and hydrogen fuel cell vehicles. Secondly, it demonstrates the commitment of the government to support the automotive industry to be future-ready as we integrate technologies of the future, which are green and clean in our vehicles. The scheme will also create an opportunity for volumes in the industry and for exports as well.”