Revised PLI scheme for auto sector may be approved tomorrow: Report

The revised production-linked incentive (PLI) scheme for the auto sector will seemingly be approved on Wednesday by the Union cupboard, aiming to spice up native manufacturing and creating extra jobs, PTI quoted sources. The report added that the federal government has seemingly slashed the outlay for this PLI scheme to about 26,000 crore.

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Last year when the PLI scheme was introduced for the auto business together with auto part makers, an outlay of 57,043 crore was earmarked for 5 years by the federal government. However, the revised scheme might slash this down. “The Cabinet may take up the proposal in the meeting tomorrow (on Wednesday),” PTI quoted a supply.

No purpose has been ascertained to this point for a revision within the PLI scheme for auto sector however the revised scheme will seemingly focus extra on battery electrical and hydrogen gas cell automobiles, the report added. 

(Also learn | Cabinet approves 18,100 crore PLI scheme for battery storage manufacturing)

The PLI scheme for the automotive business is part of Union Budget for 2021-22, with an outlay of 1.97 lakh crore masking the general production-linked incentives for at the very least 13 sectors. The scheme is geared toward bringing scale in key sectors of the economic system in addition to create and nurture world champions. 

Auto business physique SIAM had beforehand mentioned that the PLI scheme may even improve competitiveness within the automotive sector in addition to take its development to the subsequent stage. Various different auto business leaders together with Mahindra and Mahindra chairman Anand Mahindra has praised the scheme. Mahindra known as the initiative “a dramatic shift in attitude towards the auto industry”.

Apart from the automakers, the auto part segments which might be anticipated to be lined underneath the PLI scheme embody computerized transmission meeting, digital energy steering system, sensors, supercapacitors, sunroofs, adaptive entrance lighting, computerized braking, tyre strain monitoring system, and collision warning system.

(with inputs from PTI)

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