Exclusive: Auto PLI scheme only for electric vehicles, hydrogen fuel cell vehicles
The Production-Linked Incentive (PLI) scheme for the automobile sector will only cover electric vehicles and hydrogen fuel cell vehicles, sources told CNBC-TV18 on Wednesday.
The Production-Linked Incentive (PLI) scheme for the automobile sector will only include incentives for electric vehicles and hydrogen fuel cell vehicles, sources told CNBC-TV18 on Wednesday.
The auto PLI scheme was modified post feedback from the Prime Minister’s Office, CNBC-TV18 has learnt. The move comes as the government is of the view that new technologies need to be promoted rather than those that already have a scale.
The considered view is that internal combustion engine vehicles already have huge volumes and the government is giving a direction to industry to shift to new technologies, sources said.
The move, however, is set to disappoint large original equipment manufacturers (OEMS) and all the large listed companies that were looking forward to the PLI scheme, which is likely to be taken up b the Cabinet around September 15.
Moreover, as reported by CNBC-TV18 earlier, the proposed outlay for the auto PLI scheme is likely to be slashed to Rs 26,000 crore as against Rs 57,043 crore announced by the government in November 2020. Sources, however, had said on Tuesday that the outlay could be increased further depending on the response to the scheme.
The outlay has been reduced as electric vehicles and hydrogen fuel vehicles are emerging sectors, sources said. The scheme for component makers covers 20 items in both electric and internal combustion components, they added.
Also Read: 'Still sweating & slaving away at it', Anand Mahindra responds to Elon Musk on auto industry woes
The idea of the modifications is also to bring in advanced automotive technology for the automobile and component sector under the PLI scheme.
Once approved, the government may look at inviting applications under the scheme starting November this year.
(Edited by : Kanishka Sarkar)
First Published: Sept 8, 2021 3:37 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
AAP protest today: Delhi traffic police issues traffic advisory, security at BJP headquarters beefed up
May 19, 2024 11:26 AM
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM