Production Linked Incentive (PLI) Scheme For Automobile Industry:
Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for Automobile Industry.
- The PLI scheme for the auto sector will incentivize high value Advanced Automotive Technology vehicles and products.
- The incentive structure will encourage industry to make fresh investments for indigenous global supply chain 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 ₹42,500 crore, incremental production of over ₹2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.
- The PLI Scheme for auto sector is open to existing automotive companies as well as new investors who are currently not in 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.