New Delhi: The government on Wednesday announced Rs 26,058 crore for this PLI Schemes (Production Linked Incentives) for Auto, Auto Component Industry and Drone Industry to increase manufacturing in India.
How Much Is Allocated:
An amount of Rs 25,929 crore has been earmarked for the auto sector and Rs 120 crore for the drone industry. The PLI scheme will encourage the emergence of a global supply chain of advanced automotive technologies in India.
Predicted Result:
It is estimated that over a period of five years, the PLI scheme for the Automobile and Auto Components industry will result in fresh investment of over Rs 42,500 crore, increase production by over Rs 2.3 lakh crore and create additional employment opportunities of over Rs 7.5 lakh crore. . Lakhs of jobs, said Union Minister Anurag Thakur.
Why PLI was introduced:
The plan for the auto sector envisages overcoming the cost inefficiencies of the industry to manufacture advanced automotive technology products in India.
Thakur said that the incentive structure would encourage the industry to make fresh investments for indigenous global supply chain of advanced automotive technology products.
The scheme for the auto sector is open to existing automotive companies as well as new investors who are not currently in the automobile or auto component manufacturing business.
Sub-sections of PLI:
The scheme has two components – Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Minister said that the Champion OEM Incentive Scheme is a ‘Sale Price Linked’ scheme, applicable to all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
The Component Champion Incentive Scheme is a ‘Sales Value Linked’ scheme, applicable to Advanced Automotive Technology Components of Vehicles, Completely Knocked Down (CKD) / Semi Knocked Down (SKD) Kits, Vehicle Aggregates of 2-Wheelers, 3-Wheelers, Passengers it occurs. vehicles, commercial vehicles and tractors.
Compliment schemes in place:
This PLI scheme for the automotive sector, along with the already launched PLI scheme for Advanced Chemistry Cell (Rs. Will be able to jump from An environmentally cleaner, sustainable, advanced and more efficient Electric Vehicle (EV) based system.
In addition, the PLI plan for the drone and drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.
Product-specific PLI planning for drones with clear revenue targets and a focus on domestic value addition are the keys to capacity building and making these key drivers of India’s growth strategy.
The scheme will generate an investment of Rs 5,000 crore, increase in qualified sales by Rs 1,500 crore and create additional employment of about 10,000 jobs over a period of three years.
Industry Feedback:
Sanjay Kapoor, President ACMA: The PLI scheme envisions building an ‘Atmanirbhar’ (self-reliant), globally competitive and future ready Indian automotive sector. The thrust on promoting new age technologies will help in creating a cutting edge automotive value chain in the country and will provide much needed impetus to the manufacturing of cutting edge automotive products in India. Moreover, with global economies risking their supply chain, PLI will help India develop as an attractive alternative source of high-end auto components.
Girish Wagh, Executive Director, Tata Motors: Encouraging the production of auto components using advanced technologies will lead to localisation, boost domestic manufacturing and attract foreign investment. This will help component manufacturers to make a massive effort, which will require setting up of new facilities and creating more jobs. With autos being a strategically important sector of the economy, the overall profits earned will result in a multiplier effect.
Saurabh Aggarwal, Tax Partner, Automotive Sector, EY India: While the scheme is encouraging manufacturing in the vehicle and parts sector, industries are promoting manufacturing of essential commodities by setting up the necessary infrastructure to charge such vehicles. Waiting for similar policy measures for
The beneficiaries in the PLI scheme for the auto sector are 10 automakers, 50 auto-component manufacturers and 5 new non-automotive investors planning to enter the automotive sector.
How Much Is Allocated:
An amount of Rs 25,929 crore has been earmarked for the auto sector and Rs 120 crore for the drone industry. The PLI scheme will encourage the emergence of a global supply chain of advanced automotive technologies in India.
Predicted Result:
It is estimated that over a period of five years, the PLI scheme for the Automobile and Auto Components industry will result in fresh investment of over Rs 42,500 crore, increase production by over Rs 2.3 lakh crore and create additional employment opportunities of over Rs 7.5 lakh crore. . Lakhs of jobs, said Union Minister Anurag Thakur.
Why PLI was introduced:
The plan for the auto sector envisages overcoming the cost inefficiencies of the industry to manufacture advanced automotive technology products in India.
Thakur said that the incentive structure would encourage the industry to make fresh investments for indigenous global supply chain of advanced automotive technology products.
The scheme for the auto sector is open to existing automotive companies as well as new investors who are not currently in the automobile or auto component manufacturing business.
Sub-sections of PLI:
The scheme has two components – Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
The Minister said that the Champion OEM Incentive Scheme is a ‘Sale Price Linked’ scheme, applicable to all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
The Component Champion Incentive Scheme is a ‘Sales Value Linked’ scheme, applicable to Advanced Automotive Technology Components of Vehicles, Completely Knocked Down (CKD) / Semi Knocked Down (SKD) Kits, Vehicle Aggregates of 2-Wheelers, 3-Wheelers, Passengers it occurs. vehicles, commercial vehicles and tractors.
Compliment schemes in place:
This PLI scheme for the automotive sector, along with the already launched PLI scheme for Advanced Chemistry Cell (Rs. Will be able to jump from An environmentally cleaner, sustainable, advanced and more efficient Electric Vehicle (EV) based system.
In addition, the PLI plan for the drone and drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.
Product-specific PLI planning for drones with clear revenue targets and a focus on domestic value addition are the keys to capacity building and making these key drivers of India’s growth strategy.
The scheme will generate an investment of Rs 5,000 crore, increase in qualified sales by Rs 1,500 crore and create additional employment of about 10,000 jobs over a period of three years.
Industry Feedback:
Sanjay Kapoor, President ACMA: The PLI scheme envisions building an ‘Atmanirbhar’ (self-reliant), globally competitive and future ready Indian automotive sector. The thrust on promoting new age technologies will help in creating a cutting edge automotive value chain in the country and will provide much needed impetus to the manufacturing of cutting edge automotive products in India. Moreover, with global economies risking their supply chain, PLI will help India develop as an attractive alternative source of high-end auto components.
Girish Wagh, Executive Director, Tata Motors: Encouraging the production of auto components using advanced technologies will lead to localisation, boost domestic manufacturing and attract foreign investment. This will help component manufacturers to make a massive effort, which will require setting up of new facilities and creating more jobs. With autos being a strategically important sector of the economy, the overall profits earned will result in a multiplier effect.
Saurabh Aggarwal, Tax Partner, Automotive Sector, EY India: While the scheme is encouraging manufacturing in the vehicle and parts sector, industries are promoting manufacturing of essential commodities by setting up the necessary infrastructure to charge such vehicles. Waiting for similar policy measures for
The beneficiaries in the PLI scheme for the auto sector are 10 automakers, 50 auto-component manufacturers and 5 new non-automotive investors planning to enter the automotive sector.
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