The Union Cabinet on Wednesday made two major announcements – approval of production linked incentive scheme for auto, auto-component and drone industry, and moratorium on payment of spectrum dues by telcos – in a much-needed boost to manufacturing and industry and Prime Minister Narendra Modi move towards Narendra ModiDream of ‘Self-reliant India’.
Union ministers Ashwini Vaishnav and Anurag Thakur announced the measures in a press conference.
telecommunications
He on Wednesday announced a rescue package for the troubled telecom sector, including exemptions for telecom businesses on payment of long dues, as well as a four-year moratorium on spectrum installments in April 2022. The purpose of the package is to provide relief. For corporations like Vodafone Idea, which owes the government a huge amount of statutory dues.
The relief package approved by the cabinet includes a provision that allows telecom companies to convert interest on their spectrum dues into government stock, with a moratorium of four years. The scheme could put an end to the long-standing financial difficulties of telecom companies as well as their inability to pay thousands of crores of rupees in spectrum charges to the government.
main points:
• AGR definition has been rationalized to potentially exclude non-telecom revenue
• Cabinet approves moratorium of 4 years on telecom dues
• 100% FDI in Telecom will be allowed under automatic route
• Spectrum user charges rationalized. Now the rates will be compounded annually. Spectrum can now be surrendered, spectrum can also be shared Spectrum auction calendar to be made.
• The process of installation of towers has now been simplified on self-approval basis
• KYC for shifting from prepaid to postpaid abolished
• All portals to be integrated into DoT portal for ease of doing business
• Annual compounding of interest and penalty has been abolished.
• Spectrum auction fee of 30 years instead of 20 years.
• All KYC will be digitized.
• An auction calendar will be maintained.
• The Customs Notification of 1953 has been amended, making the import of equipment easier.
• 4G, 5G core network technology will be designed in India and manufactured in India.
• Moratorium will start from 1st October.
auto sector
The Rs 26,058 crore Production Linked Incentive (PLI) scheme for auto, auto-components and drone industries was announced by Thakur to enhance India’s manufacturing capabilities.
The PLI scheme will encourage the emergence of a global supply chain of advanced automotive technologies in India. The minister told reporters after the cabinet meeting that an incentive of Rs 26,058 crore would be given to the industry in five years. It is estimated that over a period of five years, the PLI scheme for the Automobile and Auto Component Industry will generate fresh investments of over Rs 42,500 crore, increase production by over Rs 2.3 lakh crore and create additional employment opportunities of over 7.5 lakh. Will be job, Thakur said.
main points:
• Approval of PLI for auto sector, total outlay of $26,538 crore. Rs 120 crore will be allocated for Drone PLI.
• Champion auto companies to make fresh investment of Rs 2,000 crore in 5 years, 2-W and 3-W to invest Rs 1,000 crore in five years
• Component manufacturers will have to invest Rs 500 crore
• The drone industry will receive exceptional treatment. Drone manufacturing PLI will ensure 20% incentive over 5 years
• Tier-1 companies will qualify for the Auto PLI scheme; New non-automotive investors with a net worth of Rs 1,000 crore can qualify.
• Additional 2% incentive for revenue over Rs 10,000 crore over 5 years;
• Incentive under Auto PLI scheme is between 8-13%
• 5% additional incentive for electric and hydrogen fuel cell vehicles
The PLI scheme for automobile and drone industries is part of the overall announcement of PLI schemes for 13 sectors made earlier with an outlay of Rs 1.97 lakh crore during the Union Budget 2021-22.
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.
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 selling price linked scheme, applicable to all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
The Component Champion Incentive Scheme is a sale price linked scheme, which offers advanced automotive technology components of vehicles, fully knocked down (CKD) / semi knocked down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles. applies to. Commercial vehicles and tractors.
This PLI scheme for Automotive Sector will support India with the already launched PLI Scheme for Advanced Chemicals Cell (Rs. will enable the system to move forward. 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 lead to an investment of Rs 5,000 crore over a period of three years, increase qualified sales by Rs 1,500 crore and generate additional employment of about 10,000 jobs.
With PTI input.
read all breaking news, breaking news And coronavirus news Here