Production Linked Incentive (PLI) scheme would incentivise high-value advanced automotive technology vehicles and products, Ministry of Heavy Industries, Secretary Arun Goel said.
"The PLI scheme for the automobile sector would make India a top investment destination. The scheme was announced at the right time so as to attract the global players like Tesla to accelerate its India-entry plans," he said at an event after the Union Cabinet approved the scheme.
The Union Cabinet on Wednesday approved the PLI scheme for auto, auto-components to boost the production of Electric Vehicles (EVs) and Hydrogen Fuel Vehicles.
Also read: Tesla plans fully-owned retail outlets in India: Report
The scheme has a total outlay of Rs 26,058 crore for the next five years, with a share of Rs 25,938 crore for the auto industry and the auto component industry, and Rs 120 crore for the drone industry.
“This scheme does not in any way discourage the ICE (internal combustion engine) technology. It just incentivises future investments," Goel said.
"In the changing environment, we have to ensure that the Indian auto industry emerges as a leader. It is with that strategy and objective that PLI has been framed for advanced automotive technologies in all sectors," he added.
"At present, India is exporting worth $12 billion vehicles and worth $15 billion components. However, India is also importing components worth $17 billion. To reduce the import of components, the scheme will help those automotive companies which would fulfill the conditions of revenue and investment," he said.
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(Published 16 September 2021, 09:11 IST)
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