INDUSTRY
Government notifies PLI scheme for automobile & auto components; aiming to bring fresh investments of over Rs 42,500 crore in auto sector
- IBJ Bureau
- Sep 24, 2021
The government has issued notification regarding production linked incentive (PLI) scheme for automobile & auto components on 23.09.2021. The scheme was announced earlier this month.
The PLI scheme for the auto sector envisages to overcome the cost
disabilities of the industry for manufacture of advanced automotive technology
(AAT) products in India. The incentive structure will encourage industry to
make fresh investments for indigenous global supply chain of AAT products. It
is estimated that over a period of five years, the PLI scheme for auto sector will
lead to fresh investments of over Rs 42,500 crores, incremental production of
over Rs 2.3 lakh crore and will create additional employment opportunities of
over 7.5 lakh jobs. Further, this will increase India’s share in global
automotive trade.
The scheme is open to existing automotive companies as well as new non-automotive
investor companies (who are currently not in automobile or auto component
manufacturing business). The scheme has two components viz. champion OEM incentive
scheme and component champion incentive scheme.
The PLI scheme will be implemented over a period of five years starting from FY22-23. An approved applicant shall be eligible for benefits for 5 consecutive financial years subject to conditions mentioned in the scheme notification.
The notifications are also available on the website of Ministry of Heavy Industries. (https://dhi.nic.inSchmes/Programs Production Linked Incentive scheme)
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