New Delhi
The
government is likely to notify the Production-Linked Incentive (PLI) scheme –
announced as part of Aatmanirbhar Bharat initiative to boost domestic
manufacturing – for auto and auto components sector very soon. The government
has announced a PLI scheme for automobile and auto components with a total
outlay of Rs 570.42 billion.
According
to Sumita Dawra, Additional
Secretary, the Department for Promotion of Industry and Internal Trade (DPIIT),
the government introduced the PLI scheme to encourage an incentive-based model
for manufacturing, attracting advanced technologies, creating economies of
scale and meeting quality standards. “They are going
as per strict timelines and looking forward to notify the scheme under auto
components, steel, and textiles,” she said.
She
added that during the current pandemic, multinational firms have
realised the issues of concentrating their supply chains in selected
geographies and through this, India is pitching itself to be part of the global
supply chain by attracting investments in these PLI sectors.
The
government approved the PLI scheme for 13 sectors last year with a total outlay
of nearly $ 26.67 billion over a five-year period.
According
to Sanjay Aggarwal, President, PHDCCI, the scheme would help attract both
domestic and foreign investments.
Kuntal
Sharma, Economic Adviser, Ministry of Food Processing Industries, said that the
sector holds huge scope for growth and expansion and the PLI scheme will help in achieving that and will increase value
addition in the sector.
For
auto & auto components, the total incentive planned under the PLI scheme
starting with FY23 and ending FY27 is around Rs 570.42 billion. The government
is expecting an additional investment of over Rs 1 trillion over a five-year
period with potential to generate additional 58.84 lakh jobs.
Source: The Indian Express
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