Cabinet may soon approve revised PLI scheme for the automotive sector

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The government has reportedly cut spending for the automotive sector under the Production Linked Incentive Program (PLI) to around Rs 26,000 crore and the proposal is expected to be approved by the Union Cabinet soon, sources said. .

Last year, the government announced a PLI program for the automotive and auto components sector with an expenditure of Rs 57,043 crore, earmarked for five years.

The sources did not disclose the reason for the revised regime to Rs 25,938 crore, but said the focus is now on battery electric vehicles and hydrogen fuel cells.

The cabinet may consider the proposal for consideration next week, one of the sources said.

Component segments that should be covered by the program include the automatic transmission assembly, electronic power steering system, sensors, super capacitors, sunroofs, adaptive front lighting, automatic braking, steering system tire pressure monitoring and collision warning system.

Auto industry body SIAM has previously said the government-announced program will increase competitiveness and take the sector’s growth to the next level.

The program for the sector is part of the overall production-related incentives announced for 13 sectors in the 2021-22 Union budget with an expenditure of Rs 1.97 lakh crore.

The PLI program will help evolve key sectors and build and nurture global champions.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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