The Union Cabinet has approved a production linked incentive (PLI) scheme for auto, auto-components and drone industries to enhance India’s manufacturing capabilities. The PLI scheme will incentivise the emergence of advanced automotive technologies’ global supply chain in India. Incentives worth Rs. 26,058 crore will be provided to industry over five years, the minister told reporters after the Cabinet meeting.
About the scheme:
- The PLI scheme for automobile and drone industries is part of the overall announcement of PLI schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
- The scheme for the auto sector envisages overcoming the cost disabilities to the industry for the manufacture of advanced automotive technology products in India.
- From the total budget of Rs 26,058 crores, an amount of Rs 25,938 crores has been sanctioned for the automobile industry and Rs 120 crores for the drone industry.