The PLI Scheme for the Indian automobile and auto component industry (PLI-Auto Scheme), with a financial commitment of INR 25,938 crore, was announced by the Ministry of Heavy Industries on September 23, 2021.
New Delhi: The Union government has announced the standard operating procedures ( SOPs) for the Production Linked Incentive (PLI) scheme for the automobile sector. Applicants can submit requests for the testing and certification of products utilizing advanced automotive technology to be considered for incentives. With this, the ministry hopes to increase domestic production, decrease reliance on imports, increase employment prospects and support the country’s general economic growth.Mahendra Nath Pandey, the minister for heavy industries, said that the SOPs will help strengthen manufacturing footing and achieve the national goal of Aatmanirbhar Bharat.
According to an official release on Thursday, the scheme is expected to draw sizable investments and assist India in becoming a global center for vehicle production.
The PLI Scheme for the Indian automobile and auto component industry (PLI-Auto Scheme), with a financial commitment of INR 25,938 crore, was announced by the Ministry of Heavy Industries on September 23, 2021.
Incentives are proposed under the PLI-Auto Scheme to increase local production of advanced automotive technology (AAT) goods and draw capital into the value chain of automotive manufacture.
The program is divided into two parts: Component Champions will produce high-value, high-tech components, and Champion OEM will produce electric or hydrogen-powered automobiles.
Will bring clarity, promote sustainable production, say industry leaders