Centre approves new EV policy
It aims at promoting India as a manufacturing hub.
The Union Government on Wednesday announced PLI (Performance Linked schemes) schemes for auto, auto component, and drone industries earmarking Rs 26,058 crores to the scheme — Rs 25,938 for Auto Sector and Rs 120 crore for Drone manufacturing sector.
This is the tenth PLI scheme announced by the Modi government in the past one year. The decision to this was taken in a Cabinet chaired by Prime Minister Narendra Modi.
The new PLI scheme would have nothing to do with the ongoing PLI scheme given for the manufacturing of Electric Vehicles and Advanced Chemistry Cells, said Minister of State for Finance Anurag Thakur.
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As per this scheme, investors in the auto sector have to invest Rs 2,000 crore, Rs 1,000 crore for two and three-wheeler auto manufacturing companies.
The company has to invest Rs 250 crore for existing auto manufacturing companies, and Rs 500 crore for the new manufacturers.
The idea behind the PLI scheme is to promote domestic industry and manufacture components which till now were being imported from abroad.
Out of the total Rs 26,058 crore allocated in the 10th PLI scheme, Rs 25,938 crore would be given to the Auto sector, while Rs 120 crore has been earmarked for drone industry, said Anurag Thakur.
Besides enhancing India’s manufacturing capacity, the PLI scheme is likely to bring an additional investment of Rs 45,500 crores in the coming five years and generate around 7.6 lakh employment, the Minister said.
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