PLI Scheme for Auto Industry and
Drone Industry to enhance with a Budgetary Outlay of ₹ 26,058 crore Approved
· PLI Auto Scheme will incentivize emergence
of Advanced Automotive Technologies global supply chain in India
· Help create additional employment
of over 7.6 lakh people
· Incentives worth ₹ 26,058 crore
will be provided to industry over five years
· PLI Scheme for auto sector will bring
fresh investments of over₹42,500 crore in five years and incremental production
of over ₹ 2.3 lakh crore
· PLI Scheme for Drones will bring fresh
investments of over₹5,000 crore in three years and incremental production
of over ₹ 1,500 crore
· PLI Scheme for automotive sector along
with already launched PLI for Advanced Chemistry Cell (₹18,100 crore) and
Faster Adaption of Manufacturing of Electric Vehicles (FAME) Scheme (₹10,000
crore) will give a big boost to manufacture of Electric Vehicles
· Will enable India to leapfrog to environmentally
cleaner, Electric Vehicles and Hydrogen Fuel Cell Vehicles
Taking steps forward towards the vision of an ‘Aatmanirbhar
Bharat’, Government led by Hon’ble Prime Minister, Narendra Modi, has approved the
PLI Scheme for Automobile Industry and Drone Industry with a budgetary outlay of
₹ 26,058 crore on 15 September, 2021. The PLI scheme for the auto sector will
incentivize high value Advanced Automotive Technology vehicles and products. It
will herald a new age in higher technology, more efficient and green automotive
manufacturing.
PLI Scheme for Automobile Industry and Drone Industry
is part of the overall announcement of PLI Schemes for 13 sectors made earlier during
the Union Budget 2021-22, with an outlay of ₹ 1.97 lakh crore. With the announcement
of PLI Schemes for 13 sectors, minimum additional production in India is expected
to be around ₹ 37.5 lakh crore over 5 years and minimum expected additional
employment over 5 years is nearly 1 crore.
The PLI Scheme for the auto sector envisages to
overcome the cost disabilities to the industry for manufacture of Advanced Automotive
Technology products in India. 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. Further this will
increase India’s share in global automotive trade.
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.
This PLI Scheme for automotive sector along with
the already launched PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100
crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (₹10,000
crore) will enable India to leapfrog from traditional fossil fuel based automobile
transportation system to environmentally cleaner, sustainable, advanced and more
efficient Electric Vehicles (EV) based system.
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 ₹ 5,000
Crore, increase in eligible sales of ₹ 1500 crore and create additional employment
of about 10,000 jobs.