The production linked incentive (PLI) is a scheme launched by the central government to increase investment and boost the production and manufacturing capabilities of the companies. This would directly increase the job opportunities in the particular sector that comes under the PLI scheme. The Central Government first launched the production linked incentive scheme in 2020 and as of November 2021, this PLI scheme covers 13 different industry sectors in India. Is the PLI scheme beneficial?
To answer the question, we need to understand the PLI scheme thoroughly.
What is PLI (Production Linked Incentive) Scheme?
Introducing a PLI scheme is a strategy used by the government to aid the production of certain goods necessary in one way or the other. These essential factors may include job creation, taxation and social welfare.
- The PLIs are monitory aids for companies and businesses to upscale their goods output.
- And the financial incentives could be tax rebates, reduced export and import duties, and also more straightforward land acquisition schemes.
- The Automobile and auto components sectors are a part of the PLI scheme this time around from many industries.
- For the Automotive sector, the scheme offers benefits to enhance the domestic manufacturing and production of automotive technology specifically.
- This sector has overlayed an amount of Rs. 25,938 Crore.
PLI scheme in Automobile Sector in India
For India’s new production linked incentive scheme, 20 automobile and auto component manufacturing companies have been approved. So, these incentives will help the automotive sector to make brand new and unique investments to develop and manufacture advanced automotive technology indigenously.
This scheme can be considered a boon indeed for the automakers. Why? Well, the PLI scheme for the automobile sector overlayed Rs. 25,938 Crore along with 10,000 Crore under the FAME scheme. It will allow the Indian automobile industry to drastically switch to sustainable and eco-friendly transportation.
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Automobile companies include:
- Tata Motor Limited
- Ford India Private Limited
- Hyundai Motor India Limited
- Eicher Motors Limited
- Ashok Leyland Limited
- Mahinda and Mahindra Limited
- Kia India Private Limited
- PCA Automobiles India Private Limited
- Suzuki Motor Gujarat Private Limited
- Pinnacle Mobility Solutions Private Limited
- Bajaj Auto Limited
- TVS Motor Company Limited
- Hero MotoCrop Limited
- Piaggio Vehicles Private Limited
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Non-Vehicle Automobile companies include:
- Axis Clean Mobility Private Limited
- Hop Electric Manufacturing Private Limited
- Ola Electric Technologies Private Limited
- Elest Private Limited
- Booma Innovative Transport Solutions Private Limited
- Powerhaul Vehicle Private Limited
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