Sign In
Learn bits
Schemes & Policies
Mahesh

28/04/23 06:45 AM IST

Production-Linked Incentive scheme for the automotive sector

In News
  • The Ministry of Heavy Industries here today announced the release of SOPs under the PLI Auto scheme to testing agencies.
About PLI- Auto Scheme
  • The Ministry of Heavy Industries notified the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-AUTO Scheme) on September 23, 2021, with a budgetary outlay of Rs 25,938 crore.
  • The PLI-Auto Scheme proposes financial incentives to boost domestic manufacturing of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain.
  • The scheme has two parts: Champion OEM, which will make electric or hydrogen-powered vehicles, and Component Champions, which will make high-value and high-tech components.
  • The key objectives of the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components are to provide financial incentives to boost domestic manufacturing of advanced automotive technology products and attract investments in the automotive manufacturing value chain.
  • Its prime objectives include overcoming cost disabilities, creating economies of scale, and building a robust supply chain in areas of advanced automotive technology products.
  • The scheme also aims to generate employment in the country.
  • To facilitate the automobile industry's move up the value chain into higher-value-added products
Guidelines
  • Applicants must achieve a domestic value addition (DVA) of 50% to claim incentives under the scheme.
  • The auto companies and component makers are required to calculate and present the DVA across their supply chain and present these details to the testing agencies.
Source- PIB

More Related Current Affairs View All

10 Jan

Rural landowners in Delhi want repeal of Sections 33 and 81 of Delhi Land Reforms Act

'Both sections dealing with the use and sale of agricultural land have come under the spotlight ahead of the Delhi Assembly elections.' This can only be done by the Central gove

Read More

10 Jan

Pravasi Bharatiya Diwas

'Prime Minister Narendra Modi inaugurated the 18th edition of the Pravasi Bharatiya Diwas  in Bhubaneswar.' The event is held once every two years to “honour the cont

Read More

10 Jan

Deciphering the Indus script

'Recently, Tamil Nadu Chief Minister M.K. Stalin announced a $1-million prize for experts or organisations in the event of their success in deciphering the scripts of the Indus Val

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps