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Cabinet Clears 26,000 Crore New Scheme For Auto Sector To Boost Production, Special Focus On Electric Vehicles

The PLI scheme cleared has a particular emphasis on manufacturing of electrical automobiles

The authorities at present cleared roughly Rs 26,000 crore price new production-linked incentive (PLI) scheme for the auto sector, to spice up the manufacturing of electrical automobiles and hydrogen gas automobiles. 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 parts sector with an outlay of Rs 57,043 crore, for a interval of 5 years. The Cabinet has cut back the scheme for the sector to Rs 25,938 crore to shift concentrate on hydrogen gas automobiles and electrical automobiles. 

The auto element segments which might be coated below the PLI scheme embrace digital energy steering system, computerized transmission meeting, sensors, sunroofs, supercapacitors, adaptive entrance lighting, tyre strain monitoring system, computerized braking, tyre strain monitoring system, and collision warning system.

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.

Earlier, auto trade physique Society of Indian Automobile Manufacturers (SIAM) mentioned that the PLI scheme will enhance competitiveness and strengthen the expansion of the sector. 

Meanwhile, shares of auto element makers on Wednesday, September 15, ralied after the Cabinet accepted the incentive scheme for auto makers. Shares of automotive axle maker Jamna Auto rallied greater than 9 per cent to hit an intraday excessive of ₹ 93.70, whereas, Varroc Engineering superior 18 per cent, GNA Axles rose three per cent, and Pricol superior 5 per cent, amongst others. 

Also, the measure of auto shares on the National Stock Exchange, Nifty Auto index, gained 0.5 per cent after the announcement of PLI scheme.

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