homebusiness NewsAuto PLI scheme incentivises transition from ICEs to EVs; enables OEMs to invest strongly: M&M
Auto PLI scheme incentivises transition from ICEs to EVs; enables OEMs to invest strongly: M&M
The Union Cabinet, on Wednesday, cleared the production-linked incentive (PLI) scheme for automobile, auto component, and drone manufacturing. Rajesh Jejurikar, ED-auto and farm sectors, Mahindra and Mahindra (M&M), shared his views.
The Union Cabinet, on Wednesday, cleared the production-linked incentive (PLI) scheme for automobile, auto component, and drone manufacturing. The total outlay of the scheme is Rs 25,938 crore and Rs 120 crore will be allocated for the drone PLI scheme. The initial outlay approved for the PLI scheme for vehicles and components makers was Rs 57,000 crore in 2020. Rajesh Jejurikar, ED-auto and farm sectors, Mahindra and Mahindra (M&M), shared his views.
“We are very happy with the PLI scheme,” he said.
“What we have on the table today is an attractive proposition, a good scheme. It will be providing a sound and strong impetus for us and many other auto companies to invest in technologies for the future, that is the battery for electric vehicles (EVs), the hydrogen fuel cell vehicles, and a host of advanced technologies,” he added.
Also Read:
He believes, the transition from internal-combustion engines (ICEs) to EVs is where an incentive scheme of this kind creates huge value.
“There is now a clear incentive to enable a transition of that kind and it enables original equipment manufacturers (OEMs), auto component players and the rest of the supply chain to strongly invest knowing that there is a stronger financial return and an ability to price appropriately because of the incentives. That will drive the pace of penetration as well,” he explained.
Also Read: Auto PLI scheme: Invite industry to fully exhaust funding, CNG covered under it, says Secy Arun Goel
On semiconductor issue, he mentioned, “Chip shortage falls in the category of high level of uncertainty and unpredictability and we have to learn to live with it. The semiconductor issue at the moment is a larger issue because of COVID-19 and because of what is happening in Malaysia.”
For the full interview, watch the accompanying video.
(Edited by : Dipika Ghosh)
First Published: Sept 16, 2021 2:01 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!
Kannauj Lok Sabha elections: Can ex-UP CM Akhilesh Yadav reclaim this erstwhile SP bastion?
May 12, 2024 11:32 PM
Khunti Lok Sabha Elections 2024: Arjun Munda and Kali Charan to lock horns in this clash of tribal leaders
May 12, 2024 8:59 PM
Malkajgiri Lok Sabha election: A three-way contest among turncoats
May 12, 2024 8:45 PM