New Delhi: After the cabinet meeting on Wednesday, the government has approved an incentive scheme of Rs 26,058 crore for the auto industry, auto component industry, drone industry. The decision was taken in a meeting chaired by Prime Minister Narendra Modi.
The Production Linked Incentive (PLI) scheme approved by the Cabinet has been on the cards for a long time and aims to boost domestic manufacturing and generate employment.
The newly announced PLI scheme will be effective for five years from FY 23 and the base year for eligibility criteria will be 2019-20.
Union Information and Broadcasting Minister Anurag Thakur announced that the PLI scheme has a budget provision of Rs 26,058 crore – Rs 25,938 crore for the auto sector and Rs 120 crore for the drone industry.
Anurag Thakur after announcing the impetus for the drone industry said that this sector is new and very good in demand so it will get exceptional treatment.
Anurag Thakur said, “Talking about new technology, PLI scheme has been brought keeping in mind the present as well as future needs and also for local markets, so that we can strengthen our industry.”
He also announced that ‘champion’ auto companies will have to make fresh investments of Rs 2,000 crore over five years. Two-wheelers and three-wheelers will have to invest Rs 1,000 crore over five years and component manufacturers will have to invest Rs 500 crore over five years under the PLI scheme.
The government is expecting to generate employment for more than 7 lakh people from the auto sector through this PLI scheme.
The scheme also aims to promote the production of electric vehicles and hydrogen fueled vehicles in the country.
Thakur further said, “The automobile industry contributes 35% to the country’s manufacturing GDP. It is a leading sector in generating employment. If we talk about the global automotive trade, we need to increase India’s participation. Is.”
The government has reduced the outlay of this PLI scheme from Rs 57,043 crore to about Rs 26,058 crore. The PLI scheme for the automotive industry is a part of the Union Budget for 2021-22, with an outlay of Rs 1.97 lakh crore, covering total production-linked incentives for at least 13 sectors.
Car Loan Information:
Calculate Car Loan EMI
.