New Delhi: Union Cabinet is likely to approve the revised incentive (PLI) incentive (PLI) scheme for the car sector, which aims to promote domestic manufacture and create fields, according to sources.
The government is believed to have cut expenses for this PLI scheme around Rs 26,000 Crore, they said.
Last year, the government has announced a scheme for the automotive sector and car components with RS 57,043 crore expenditure, intended for five years.
“The cabinet can take a proposal in a meeting tomorrow (on Wednesday),” said one source.
Sources do not disclose the reason for revising the scheme to Rs 25,938 Crore, but states that focus is now more on electric batteries and hydrogen fuel cell vehicles.
The expected component segment will be included in the scheme including automatic transmission assembly, electronic power steering system, sensor, supercapacitor, sunroof, adaptive front lighting, automatic braking, tire pressure monitoring system, and collision warning system.
Previously, the Siam Automatic Industry Agency said the scheme announced by the government would increase the competitiveness and take the growth of this sector to the next level.
The scheme for this sector is part of the overall incentive related to the production announced for 13 sectors in the Union 2021-22 budget with 1.97 lakh crore rs expenditure.
The PLI scheme will help bring a scale in the main sectors and create and maintain global champions