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– Expects to create over 7.5 lakh jobs opportunities
– PLI scheme will address the needs of both new and existing auto and component industries
The Indian government has announced a Production-Linked Incentive (PLI) scheme for the automotive and drone industry with a budgetary outlay of Rs 26,058 crore. The PLI scheme for the auto sector is aimed at overcoming the cost limitations to the industries for the manufacturing of Advanced Automotive Technology products in India. The PLI scheme will address the needs of both the automobile as well as auto components industries and is open to existing automotive companies as well as new investors.
The scheme aims to bring in fresh investment of over Rs 42,500 crore over a period of five years and incremental production of over Rs 2.3 lakh crore for automobile and auto component industries. In the component sector, products like flex-fuel kits, EV parts, hydrogen fuel cells, and hybrid energy storage systems have been covered. On the other hand, the combustion engine parts that are covered under the PLI scheme include electronic control units (ECUs), exhaust after-treatment, and fuel injection (FI) systems.
To avail of the benefits, existing auto manufacturers are required to make new investments of Rs 1,000 crore over the next five years. New investors are required to invest over Rs 2,000 crore to avail these benefits. The new entrants in the auto component sector are required to invest Rs 500 crore, while the existing players are required to invest Rs 250 crore.
The PLI scheme is expected to increase India’s share in the global automotive trade and also create over 7.5 lakh job opportunities.
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