The Union Cabinet on September 15 approved a production-linked incentive (PLI) scheme for the automobile sector to promote advanced technologies, including clean energy, with incentives of Rs 26,058 crore to be provided over five years.
According to a statement issued by the Government, the sector is expected to attract fresh investments of over Rs 42,500 crore in the five years and incremental production of over Rs 2.3-lakh crore with the introduction of the scheme. It is likely to create additional employment for over 7.6 lakh people, the statement said.
“The PLI scheme for the automotive sector along with the already launched PLI for Advanced Chemistry Cell (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) Scheme (₹10,000 crore) will give a big boost to manufacture of electric vehicles,” it added.
While the Government had initially announced an outlay of ₹57,043 crore for the auto sector PLI scheme, it has been trimmed to ₹26,058 crore.
The scheme is open to existing automotive companies as well as new ones currently not in the automobile or auto components manufacturing business.
Reacting to the Government announcement, Mr Venu Srinivasan, Chairman, TVS Motor Company, said, “The revised focus of the PLI scheme on alternative fuels, electric vehicles and utilisation of advanced technological innovations, will help the industry move faster towards future technologies.”
Mr Vipin Sondhi, MD & CEO, Ashok Leyland and Vice-President, SIAM, said: “The PLI scheme is all-inclusive. It provides incentives for incremental performance by the OEMs, as manufacturers move towards making India a strong hub for electric mobility while also looking at harnessing the potential of hydrogen energy for automotive applications. It will also support other advanced automotive technologies.”