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Budget: FinMin to consider PLI scheme for e-bike parts, toys, textiles, high-end phone parts

The Finance Ministry is considering expanding the Production Linked Incentive (PLI) scheme to about seven additional sectors, including e-cycle components, toys, textiles and home goods (all materials including cotton), high-end smartphone components, furniture and others are included. Leather Shoes.

“A major chunk of funding for new PLI schemes is expected to come from unutilized funds for existing PLIs. But some additional outlay may also be allocated,” said an official tracking the matter. business Line,

reallocation of funds

The source pointed out that the budget for the PLI scheme is not likely to exceed the ₹1.97 lakh crore already allocated, as substantial savings have been made under the scheme so far, and they are increasing every year. Under the PLI scheme, the savings or any unutilized amount can be reallocated to other departments that require funds under the scheme.

The PLI scheme announced in the Budget 2020-21 to create global champions in manufacturing is available for 14 sectors so far. These include pharmaceutical ingredients, large scale electronics, medical equipment, technology products, pharmaceutical drugs, telecom and networking products, food products, white goods, solar PV modules, auto and auto components, ACC batteries, MMF and technical textiles, special steel, Huh. and drones.

The scheme provides incentives to companies on incremental sales of products manufactured in India over the base year. They are specially designed to promote domestic manufacturing in sunrise and strategic sectors, curb cheap imports and reduce import bills, improve cost competitiveness of domestically manufactured goods and enhance domestic capacity and exports.

PLI for E-Bike Sector

“A sector like e-bike components may not look strategic, but the fact is that India imports around 65 per cent of components from China. A little support can help us develop our own manufacturing base of components which can give a big boost to the sector,” said the official.

In the textile sector, Rs 10,683 crore was allocated for five years to the existing PLI scheme covering MMF and technical textiles. It is expected to cost a little over Rs 6,000 crore. The second edition of the PLI scheme for textiles, which is now being planned to cover textiles made of all materials including cotton and home textiles, is likely to benefit from the remaining amount going into the total pool.

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