May 26, 2025 02:35 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
India overtakes Japan to become world’s 4th largest economy: Niti Aayog CEO | 'India has every right to defend itself against terrorism': Germany on Operation Sindoor | Trump administration bans Harvard University from enrolling international students | ED accuses Sonia Gandhi, Rahul Gandhi of cheating, money laundering in National Herald case | 'Russia, Ukraine will immediately start negotiations for ceasefire': Donald Trump after call with Putin | 'Jill and I have learned that we are strongest in the broken places': Joe Biden on cancer diagnosis | Rahul Gandhi targets Jaishankar over Op. Sindoor again, BJP says LoP speaking Pak language | Supreme Court orders SIT probe into Madhya Pradesh minister's remarks on Colonel Sofiya Qureshi | Bengaluru: Woman killed after wall collapses on her after heavy rainfall | Pak forces targeted Golden Temple after India conducted Operation Sindoor: Army
Cabinet
Image: Pixabay

Cabinet approves production linked incentive scheme for Auto Industry, Drone Industry to enhance India’s manufacturing capabilities

| @indiablooms | Sep 15, 2021, at 11:51 pm

New Delhi: Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, Government led by Prime Minister Narendra Modi, has approved the PLI Scheme for Automobile Industry and Drone Industry with a budgetary outlay of ₹ 26,058 crore.

The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient and green automotive manufacturing.

PLI Scheme for Automobile Industry and Drone Industry is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of ₹ 1.97 lakh crore.

With the announcement of PLI Schemes for 13 sectors, minimum additional production in India is expected to be around ₹ 37.5 lakh crore over 5 years and minimum expected additional employment over 5 years is nearly 1 crore.

The PLI Scheme for the auto sector envisages to overcome the cost disabilities to the industry for manufacture of Advanced Automotive Technology products in India.

The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products.

It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry  will lead to fresh investment of over  ₹42,500 crore,  incremental production of over  ₹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 PLI Scheme for auto sector is open to existing automotive companies as well as new investors 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, read the statement.

The Champion OEM Incentive scheme is a ‘sales value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments.

The Component Champion Incentive scheme is a ‘sales value linked’ scheme, applicable on Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors etc.

This PLI Scheme for automotive sector along with the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (₹10,000 crore) will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

The PLI Scheme for the Drones and Drone components industry addresses the strategic, tactical and operational uses of this revolutionary technology.

A product specific PLI scheme for drones with clear revenue targets and focus on domestic value addition is key to building capacity and making these key drivers of India’s growth strategy.

The PLI for Drones and Drone components industry, will over a period of three years, lead to investments worth ₹ 5,000 Crore, increase in eligible sales of ₹ 1500 crore and create additional employment of about 10,000 jobs.
 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu