JOIN USCentre approves Rs 26,058 cr PLI scheme for auto, drone sectors
To enhance India's manufacturing capacity, the Centre on Wednesday approved a Rs 26,058 crore production linked incentive (PLI) scheme for auto, auto-components and drone industries.
The Union Cabinet chaired by Prime Minister Narendra Modi took the decision on the PLI scheme, which aimed at incentivising the emergence of advanced automotive technologies' global supply chain in India, Union Information and Broadcasting Minister Anurag Takur told the media after the cabinet meeting.
Giving details of the scheme, he said incentives worth Rs 26,058 crore will be provided to the industry over five years. The scheme is open to existing automotive companies as well as new investors who are currently not in automobile or auto-component manufacturing business.
Over the period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs, the Minister said.
The scheme has two components - Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
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 Minister said.
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 PLI scheme for the automotive sector along with the already launched PLI for Advanced Chemistry Cell (Rs 18,100 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) Scheme (Rs 10,000 crore) will give a big boost to manufacture of Electric Vehicles. This will enable India to leapfrog to environmentally cleaner, electric vehicles and hydrogen fuel cell vehicles.
PLI scheme for drone :
PLI scheme for the drones and drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.
The scheme, over a period of three years, will attract investments worth Rs 5,000 crore, an increase in eligible sales of Rs 1500 crore and create additional 10,000 jobs, said the statement.
A product-specific PLI scheme for drones with clear revenue targets and a focus on domestic value addition is key to building capacity and making these key drivers of India’s growth strategy, the statement added.
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