Shares of auto part makers ralied after the federal government accredited manufacturing linked incentive scheme for auto makers. Shares of automotive axle maker Jamna Auto rallied over 9 per cent to hit an intraday excessive of Rs 93.70. Varroc Engineering superior 18 per cent, GNA Axles rose 3 per cent, Pricol superior 5 per cent, Kranti Industries gained 4.3 per cent, Motherson Sumi rose 2.4 per cent, Sandhar Technologies superior 4 per cent, Sona BLW Precision Forgings added 3 per cent and Minda Industries gained over 1 per cent.
The measure of auto shares on the National Stock Exchange, Nifty Auto index, superior 0.5 per cent after the announcement of PLI scheme.
The Union Cabine headed by Prime Minister Narendra Modi cleared Rs 26,000 crore value new production-linked incentive (PLI) scheme for the auto sector, to spice up the manufacturing of electrical autos and hydrogen gas autos. The PLI scheme will generate as many as 7.5 lakh jobs for the auto sector, as per authorities estimates.
Last 12 months, the federal government had introduced the scheme for the auto and auto elements sector with an outlay of Rs 57,043 crore, for a interval of 5 years.
The PLI scheme for the auto sector is a part of the general production-linked incentives introduced for 13 sectors within the Budget 2021-22 with an outlay of Rs 1.97 lakh crore.