Union Minister Anurag Thakur said the Union Cabinet has approved a Rs 26,058 crore production linked incentive (PLI) scheme for auto, auto-components and drone industry to enhance India's manufacturing capabilities. The new PLI scheme will now incentivize the emergence of advanced automotive technologies’ global supply chain in India. According to the PLI scheme, the incentives worth Rs 26,058 crore will be provided to industry over five years.
Thakur said that it is estimated that over a period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Under the PLI scheme existing auto sector players will have to make new investments of Rs 1,000 crore over the next five years to benefit from the scheme. New players will have to invest over Rs 2,000 crore. Also new players in the auto component sector will have to invest Rs 500 crore while existing players will have to invest Rs 250 crores to reap the scheme benefits.
Meanwhile, the PLI scheme for the drones and drone components industry looks to promote the strategic, tactical and operational use of this technology. He said ‘A product-specific PLI scheme for drones with clear revenue targets and a focus on domestic value addition is key to building capacity and making these key drivers of India's growth strategy.’
