PLI scheme will encourage investment in new age vehicle technology : ACMA – acma to encourage investment in new age vehicle technology with pli scheme
The Union Cabinet has approved a Production Based Incentive (PLI) scheme of Rs 26,058 crore for the Vehicles, Vehicle Components and Drone Industry. Giving this information on Wednesday, Union Information and Broadcasting Minister Anurag Thakur said that this will help in increasing the manufacturing capabilities of the country.
“Promoting new age technology will help build a cutting-edge automotive value chain in the country and provide the much-needed impetus to the manufacturing of state-of-the-art automotive products in India,” ACMA President Sanjay Kapoor said in a statement.
The country’s largest automaker Tata Motors termed the PLI scheme as progressive and transformative.
Girish Wagh, Executive Director, Tata Motors, said in a statement, “The plan is both progressive and transformative. It reiterates India’s commitment to a sustainable future and moves the country towards green mobility.
He said it offered a number of meaningful incentives across the entire value chain involved in manufacturing of battery-powered electric vehicles and hydrogen fuel cells, as well as their supporting infrastructure and exports.
The PLI scheme for the Automotive and Automotive Components Industry will see fresh investments of over Rs 42,500 crore over five years and increased production of over Rs 2.3 lakh crore. Along with this, new opportunities of more than 7.5 lakh jobs will be created.
The PLI scheme for the vehicle sector will encourage high value advanced automotive technology vehicles and products. This will usher in a new era in high technology, more efficient and green vehicle manufacturing, the statement said.
According to an official release, the PLI scheme for drones will bring in fresh investment of over Rs 5,000 crore and incremental production of over Rs 1,500 crore over three years.
The PLI Scheme for Vehicle Industry and Drone Industry is part of the overall announcement of PLI Schemes of 13 sectors announced during the Union Budget 2021-22 with an outlay of Rs 1.97 lakh crore.
According to the statement, with PLI schemes for 13 sectors, the minimum additional production in India in five years is expected to be around Rs 37.5 lakh crore and at least 10 million additional employment opportunities can be created during this period.
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