The Union Cabinet had approved a new Production Linked Incentive (PLI) scheme to boost vehicle production in the country. Reports around Rs. suggest an incentive plan. 26,000 crore for the auto sector for a period of 5 years.
see photosThe incentive scheme is to promote petrol technology with additional benefits for electric vehicles
The Indian government has reportedly approved a new Production Linked Incentive (PLI) scheme to boost vehicle production in the country. More details about the package are expected to be announced by the cabinet ministry later. As per the previous reports, the Union Cabinet had approved a plan of around ₹ 26,000 crore for the auto sector for a period of 5 years. This is almost 50 per cent less than the government’s original plan to allocate around ₹57,043 crore mainly to promote petrol technology, with the added benefits of electric vehicles (EVs).
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At the moment, it is not clear why the allocation was revised, but a source said that since the focus was on clean and advanced technology, fewer companies would be eligible for the incentive. Earlier, Reuters reported It said the government had reworked the plan to focus on companies manufacturing electric and hydrogen fueled vehicles. However, the focus towards green technology is interesting after Tesla CEO Elon Musk, who is set to launch his operations in India soon, commented on India’s high taxes on the auto sector.
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The plan was reworked by the government to focus on companies manufacturing electric and hydrogen fueled vehicles.
Earlier, it was also reported that the initial allocation over a five-year period has been reduced to ₹57,043 from the original plan if the scheme is successful, the initial funds are spent, and certain conditions are met. crore can be provided. The scheme will cover all Original Equipment Manufacturers (OEMs) – manufacturers of both vehicles as well as parts such as electronic power steering systems, automatic transmission assemblies, sensors, sunroofs, tire pressure monitoring systems, automatic braking and collision warning systems, and more .
The scheme will cover all Original Equipment Manufacturers (OEMs) – both vehicle and parts manufacturers
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A senior government source said that apart from the PLI for the auto sector, the government has also approved the much-awaited relief package for the country’s cash-strapped telecom sector. The so-called relief package, which is likely to include a moratorium on payments for airwaves, will help three of India’s major wireless carriers, including tycoon billionaire Mukesh Ambani’s Reliance Jio, but notably embattled Vodafone Idea.
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