Govt releases standard operating procedure under PLI scheme for the automobile sector
The Union government announced on Thursday the standard operating procedure of the production-linked incentive scheme for the automobile sector, under which applicants can submit applications for testing and certification of advanced automotive technology products, allowing them to qualify for incentives.
Heavy Industries Minister Mahendra Nath Pandey stated that his ministry is attempting to align itself with Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat and that these SOPs (standard operating procedures) will not only help achieve that but will also help increase the manufacturing foothold.
With this, the ministry hopes to boost domestic manufacturing and reduce reliance on imports, resulting in more job opportunities for Indians.
Pandey also stated that it would contribute to the nation’s overall economic growth. According to an official statement, the scheme is expected to attract significant investments and help India become a global hub for automobile manufacturing.
On September 23, 2021, the Ministry of Heavy Industries notified the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-AUTO Scheme), with a budgetary outlay of Rs 25,938 crore.
The PLI-Auto Scheme proposes financial incentives to increase domestic production of advanced automotive technology (AAT) products and to attract investments in the automotive manufacturing value chain.
The program is divided into two parts: Champion OEM, which will manufacture electric or hydrogen-powered vehicles, and Component Champions, which will manufacture high-value, high-tech components.
The heavy industries ministry notified the categories of 19 AAT vehicles and 103 AAT components that will be covered by the scheme on November 9, 2021.
These are either advanced or cutting-edge automotive components, those for which there is no supply chain in India or both. As a result of this scheme, India will be able to increase its share of the global advanced technology and automotive supply chains, according to the statement.