After the Narendra Modi government announced a production-linked incentive (PLI) scheme for 10 more sectors, with an outlay of about Rs 1,45,980 crore over a period of five years, the Department of Heavy Industries soon will share a draft with the automotive industry.
Each line ministry will be preparing a PLI scheme for their respective sector. For the automotive sector, the line ministry is the Department of Heavy Industries. The ministry is in consultation with component manufacturers, vehicle manufacturers on what should be the contours and eligibility criteria for a scheme like this.
It is believed that the ministry will soon share a draft with the industry, which will also need cabinet approval. This scheme would be aimed at overcoming cost difficulties including logistics costs, eligible applicants are likely to receive incentives on the sales value
CNBC-TV18’s Parikshit has more details.