Govt nods Rs 26,058 cr PLI scheme for automobile and drone industry

16 Sep 2021 CW Team

The centre has approved a budget of Rs 26,058 crore PLI scheme for the automobile industry and drone industry as a part of its Atmanirbhar Bharat initiative.

The PLI Scheme for Automobile Industry and Drone Industry is a part of the overall declaration of PLI Schemes for 13 sectors made earlier during the union budget 2021-22, with an outlay of Rs 1.97 lakh crore.

With the declaration of PLI Schemes for 13 sectors, the minimum additional production in India is likely to be nearly Rs 37.5 lakh crore over five years, and the minimum expected additional employment over five years is about one crore.

It is estimated that in five years, the PLI Scheme for automobile and auto components Industry would result in a fresh investment of more than Rs 42,500 crore, incremental production of more than Rs 2.3 lakh crore.

The PLI Scheme for the auto sector is open to existing automotive firms and new investors who are presently not in the automobile or auto component manufacturing business. The scheme has two elements -Component Champion Incentive Scheme and Champion OEM Incentive Scheme.

This PLI Scheme for the automotive sector, along with the already started PLI scheme for Advanced Chemistry Cell (ACC) and Faster Adoption of Manufacturing of Electric Vehicles (FAME), will allow India to switch from conventional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more effective Electric Vehicles (EV) based system.

The PLI Scheme for the drones and drone elements industry approaches the tactical, strategic and operational applications of this revolutionary technology.

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Also read: PLI scheme for solar PV to attract Rs 14k cr investment

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