Companies making equipment for hydrogen and electric vehicles will get an incentive of 13 to 18 percent. If seen, the way is being cleared for setting up at least 100 new plants in the automobile sector.
The road to making India the world’s leading manufacturing destination in the automobile sector is now clearly visible.
The Central Government has been able to attract total investment proposals of Rs 74,850 crore under the Production Linked-Incentive (PLI) Scheme for the Automobile and Auto Component Industry as against the estimated investment target of Rs 42,500 crore.
These offers have come from 75 companies, which include leading domestic and foreign companies like Maruti, Suzuki, Hori Motocorp, Toyota, TVS, Lumax, Mando, Nideck, Bosch, Ashok Leyland, Mahindra and Mahindra Bharat Forge.
The scheme was launched by the government on September 23, 2021, under which automobile companies doing manufacturing and development work in India will be given various incentives for five years from April 01, 2022.
Union Heavy Industries Minister Dr. Mahendra Nath Pandey has said about this that the way auto companies have identified India as a manufacturing destination of international level, it is in line with Prime Minister Narendra Modi’s call for self-reliant India.
India will certainly take a big leap towards a cleaner, sustainable, advanced and more efficient Electric Vehicle (EV) based system. This is a big step towards making India a manufacturing hub. Let us inform that under this scheme, more than 100 applications were received by the government.
In the first phase of the scheme, proposals of 20 companies were allowed as original equipment manufacturers. If seen in this way, the way for setting up at least 100 new plants in the automobile sector is being cleared.
According to the plan of the central government, companies manufacturing equipment related to safety, flex fuels, CNG, LNG, pollution control, passenger amenities, fuel efficiency will get an incentive of 08 to 13 percent. Companies making equipment for hydrogen and electric vehicles will get an incentive of 13 to 18 percent
A few weeks ago, it was told by the Central Government that seven and a half lakh jobs would be created from the Automobile PLI Scheme, but the way more proposals have been accepted now, this number may increase.
