Cabinet Clears ₹ 26,000 Crore Scheme For Auto Sector To Boost Production

 Cabinet Clears ₹ 26,000 Crore Scheme For Auto Sector To Boost Production

The government today cleared approximately ₹ 26,000 crore worth new production-linked incentive (PLI) scheme for the auto sector, to spice up the assembly of electrical vehicles and hydrogen fuel vehicles. The PLI scheme will generate as many as 7.5 lakh jobs for the auto sector, as per government estimates.

Last year, the govt had announced the scheme for the car and auto components sector with an outlay of ₹ 57,043 crore, for a period of 5 years. the cupboard has reduce the scheme for the world to ₹ 25,938 crore to shift specialise in hydrogen fuel vehicles and electric vehicles.

The auto component segments that are covered under the PLI scheme include electronic power-assisted steering system, automatic drive assembly, sensors, sunroofs, supercapacitors, adaptive front lighting, tyre pressure monitoring system, automatic braking, tyre pressure monitoring system, and collision warning system.

The PLI scheme for the auto sector is a component of the general production-linked incentives announced for 13 sectors within the Budget 2021-22 with an outlay of ₹ 1.97 lakh crore.

Earlier, auto industry body Society of Indian Automobile Manufacturers (SIAM) said that the PLI scheme will increase competitiveness and strengthen the expansion of the world .

Meanwhile, shares of auto component makers on Wednesday, September 15, ralied after the cupboard approved the motivation scheme for auto makers. Shares of automotive axle maker Jamna Auto rallied quite nine per cent to hit an intraday high of ₹ 93.70, whereas, Varroc Engineering advanced 18 per cent, GNA Axles rose three per cent, and Pricol advanced five per cent, among others.

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