Sumary of To push production, Cabinet clears Rs 26,058-crore PLI for automotive sector:
- The union Cabinet on Wednesday approved a Rs 26,058-crore Production Linked Incentive (PLI) scheme for automobile, auto component and drone manufacturers to boost their domestic production capabilities.
- The scheme aims to enhance manufacturing of advanced automobiles, including electric vehicles, and auto components in India.
- According to the government, the scheme is expected to attract additional investment of Rs 42,500 crore to the automobile sector and generate 7.6 lakh jobs, according to the government.
- The total outlay of the scheme is, however, less than half of the previously announced Rs 57,000 crore expenditure that was planned for the automobile sector.
- “The scheme will strengthen the manufacturing capacity of advanced automobile vehicles and drones,” said Information &
- Broadcasting Minister Anurag Singh Thakur, adding the scheme was expected to generate incremental turnover of Rs 2.3 lakh crore in the automobile sector.
- The scheme includes incentives of Rs 25,938 crore for the automobile and auto component manufacturers and Rs 120 crore for drone manufacturers.
- When asked about the smaller outlay than what was previously announced, Thakur said the scheme had been designed after consultations with the industry.