Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components
According to a recent report, it has been learned that the Production Linked Incentive (PLI) scheme for automobiles and auto components has attracted more investment than the target.
Under this scheme of the auto sector, a target of investment of Rs 42,500 crore was set over a period of five years. Against this target, the scheme has been successful in attracting investment proposal of 74,850 crores.
The PLI scheme for Automobiles and Auto Components was notified in the year 2021. The objective of the scheme is to enhance the country’s capabilities in manufacturing high-end automotive products.
There are two components to this scheme:
Champion OEM Incentive Scheme, and Component Champion Incentive Scheme.
- Here OEM means Original Equipment Manufacturer.
- The Champion OEM incentive scheme is for all segments of Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles.
- Component Champion Incentive Scheme High-end automotive technology based components of vehicles; Completely Knocked Down (CKD) Kit; For two wheelers and three wheelers, passenger vehicles, commercial vehicles and tractors.
- The scheme is open to existing automotive companies and new non-automotive investor companies.
Automobile Sector in India:
- The automobile industry manufactured 26.36 million vehicles in the financial year 2019-20.
- The auto sector in India contributes 35% to the country’s manufacturing based GDP.
- In addition, India’s auto sector is projected to establish itself as the world’s third largest automotive market in terms of volume (numbers) by the year 2026.
Source – The Hindu