Revised PLI scheme for auto sector may be approved tomorrow: Report
The revised production-linked incentive (PLI) scheme for the automobile sector will likely be approved on Wednesday by the Union cabinet, aiming to boost local manufacturing and creating more jobs, PTI quoted sources. The report added that the government has likely slashed the outlay for this PLI scheme to about ₹26,000 crore.
Last year when the PLI scheme was announced for the auto industry including auto component makers, an outlay of ₹57,043 crore was earmarked for five years by the government. However, the revised scheme could slash this down. "The Cabinet may take up the proposal in the meeting tomorrow (on Wednesday)," PTI quoted a source.
No reason has been ascertained so far for a revision in the PLI scheme for auto sector but the revised scheme will likely focus more on battery electric and hydrogen fuel cell vehicles, the report added.
The PLI scheme for the automotive industry is a part of Union Budget for 2021-22, with an outlay of ₹1.97 lakh crore covering the overall production-linked incentives for at least 13 sectors. The scheme is aimed at bringing scale in key sectors of the economy as well as create and nurture global champions.
Auto industry body SIAM had previously said that the PLI scheme will also increase competitiveness in the automotive sector as well as take its growth to the next level. Various other auto industry leaders including Mahindra and Mahindra chairman Anand Mahindra has praised the scheme. Mahindra called the initiative "a dramatic shift in attitude towards the auto industry".
Apart from the automakers, the auto component segments that are expected to be covered under the PLI scheme include automatic transmission assembly, electronic power steering system, sensors, supercapacitors, sunroofs, adaptive front lighting, automatic braking, tyre pressure monitoring system, and collision warning system.
(with inputs from PTI)