New Delhi: The government Wednesday announced RS 26,058 Crore for the PLI scheme (production incentives) for the automatic component industry and the drone industry to improve manufacturing in India.
How much is allocated: The number of Rs 25,929 Crore has been intended for the automatic sector and RS 120 Crore for the drone industry.
The PLI scheme will provide incentives for the emergence of the global global supply chain of Automotive Advanced in India.
Predicted results: It is estimated that for a period of five years, the PLI scheme for the car and automotive component industry will lead to new investments more than Rs 42,500 Crore, additional production of more than RS 2.3 Lakh Crore and will create additional employment opportunities.
More than 7.5 lakh work, said Union Minister Thakur.
Why PLIs are introduced: schemes for the automatic sector imagine overcoming cost disabilities to the industry for the manufacture of advanced automotive technology products in India.
The incentive structure will encourage the industry to make new investments for the indigenous global supply chains of advanced automotive technology products, Thakur said.
Schemes for automated sectors are open to existing automotive companies and new investors who are currently not in car manufacturing business or automatic components.
Sub-part of the pli: This scheme has two components – OEM champion incentive schemes and component champion incentive schemes.
OEM champion incentive scheme is a ‘sales value’ scheme, which applies to battery electric vehicles and hydrogen fuel cell vehicles from all segments, the Minister said.
The component champion incentive scheme is a ‘sales value’ scheme, which applies to sophisticated automotive technology components, completely knocked down (CKD) / Semi beats (SKD) kit, aggregate 2-wheeled vehicles, passengers, passenger vehicles, commercial vehicles and tractors.
Praise scheme in place: This PLI scheme for the automotive sector along with the PLI scheme that has been launched for sophisticated chemical cells (Rs 18,100 Crore) and adaptation faster than the manufacture of electric vehicles (RS 10,000 Crore) will allow India to jump from traditional fossil fuel systems Car transportation is based on electric vehicle-based systems that are cleaner and more efficient, and more efficient.
Furthermore, the PLI scheme for the drone industry and drone components discusses strategic, tactical and operational use of this revolutionary technology.
The special pli scheme of products for drones with clear income targets and focusing on the addition of domestic values ​​is the key to building capacity and making the main drivers of this Indian growth strategy.
This scheme will be for three years, leading to an investment worth RS 5,000 Crore, an increase in sales qualifying from Rs 1,500 Crore and creating additional jobs around 10,000 jobs.
Industrial reaction: Sile Lime, President of ACMA: The pli scheme imagines the creation of ‘Atmanirbhar’ (Mandiri), the Indian automotive sector that is globally competitive and ready in the future.
Encourage at incentives on new technologies will facilitate the creation of a sophisticated automotive value chain in this country and provide a urge that is needed to manufacture cutting-edge automotive products in India.
Furthermore, with the global economy does not risk their supply chains, PLI will help India in developing alternative sources of high-end automatic components that attract Girish Wagh, Executive Director, Tata Motors: Encourage the production of auto components will increase localization, domestic manufacture and also attract foreign investment .
This will help component manufacturers trying to scale, which will require new facility settings and create more work.
With auto into a strategic economic sector, the benefits imposed as a whole will produce a multiplier effect.
Saurabh Agarwal, Tax Partner, Automotive Sector, India India: While this scheme encourages the manufacture of vehicle space and components, the industry awaits similar policy measures to promote the making of goods needed to fill the vehicle.
The beneficiaries in the PLI scheme for the automatic sector are likely to be 10 vehicle manufacturers, 50 automatic components of producing and 5 new non-automotive investors who plan to enter into the automotive sector.