By: ICN Bureau
Last updated : February 16, 2022 12:21 pm
The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme
Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, the Government has approved the PLI Scheme for automobile industry and drone industry with a budgetary outlay of Rs. 26,058 crore.
The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products and will herald a new age in higher technology, more efficient and green automotive manufacturing. The technology includes battery electric vehicles and hydrogen fuel cells.
The incentive structure will encourage industry to make fresh investments for indigenous global supply chains 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 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. This will further increase India’s share in global automotive trade.
The PLI Scheme for the auto sector is open to existing automotive companies as well as new investors who are currently not in the automobile or auto component manufacturing business. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme.
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.
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 Rs. 5,000 crore, increase in eligible sales of Rs. 1,500 crore and create additional employment of about 10,000 jobs.