PLI scheme for auto industry to create 7.5 lakh jobs in next 5 years
India Today
The PLI scheme for the auto industry and auto components sector will lead to the creation of 7.5 lakh additional jobs over the next five years.
As per a top official, the PIL scheme or the Production Linked Incentives Scheme for the automobile and auto components sector will lead to the creation of 7.5 lakh additional jobs along with an incremental production worth Rs 2,31,500 crore over the next five years.
Among the 20 companies that will be eligible for receiving incentives under the PIL scheme are Ford, Tata Motors, Suzuki, Hyundai, Kia, and Mahindra and Mahindra.
With a budgetary outlay of Rs 25,938 crore, the government had approved the PIL scheme for enhancing India's manufacturing capabilities for advanced automotive products.
Incentives are applicable under the scheme for determined sales of advanced automotive technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022 onwards for a period of five consecutive years.
The scheme offers an incentive of up to 18 percent to encourage the auto industry to make fresh investments in indigenous supply chain of advanced automotive technology products of PLI Scheme.
This would allow the auto sector to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry which was notified on September 23, 2021.
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