Union Minister Arjun Ram Meghwal on Wednesday said the production-linked incentive (PLI) scheme will boost the country's automobile sector with an outlay of ₹57,042 crore earmarked for five years.
Last month, the Cabinet approved the PLI scheme for 10 key sectors, including telecom, automobiles and pharmaceuticals, to give an impetus to the manufacturing industry.
The scheme would entail an expenditure of about ₹2 lakh crore and is expected to attract substantial capital inflows.
"The government has announced a PLI scheme for automobile and auto components, which is being introduced with a total outlay of ₹57,042 crore over a period of five years. It is a good intervention, good decision to boost the auto sector. It will also help increase R&D (research and development)," said the Minister of State for Heavy Industries.
He added that efforts shall be made to try and resolve issues raised by the automobile industry, including those related to goods and services tax (GST) and others, by taking them to the appropriate platform.
(Also read | PLI scheme signals 'dramatic shift' in attitude towards industry: Anand Mahindra)
"An issue was raised that the GST should be rational. The government has worked to rationalise GST. The GST Council reduced the tax on EVs (electric vehicles) from 12 per cent to 5 per cent and on chargers from 18 to 5 per cent," Meghwal said.
He said the government will take an appropriate decision at the appropriate time on any proposal received to rationalise GST in the auto sector.
"We will take it to the GST Council for a decision to be taken," he added.
He was addressing a webinar organised by Assocham.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.