The Government of India has authorized a Production Linked Incentive (PIL) program of Rs 26,058 crore, to be funded over a five-year period, to increase manufacture of EVs and FCEVs in India.
They are dividing the incentive system up into two parts. EVs and FCEVs will benefit from one, while component manufacturing will benefit from the other. As a result, the budget for 2021-22 has allocated up to Rs 1.97 lakh crore for various PILs in 13 sectors.
Existing and new manufacturers can take advantage of this incentive program, designed to assist them overcome the cost disadvantages of manufacturing innovative automotive technology. In five years, the government expects that this program would result in new investments of Rs 42,500 crores, and increased production of about Rs 2.3 lakh crores, according to the government. On top of that, during a five-year period, the government expects this PIL initiative to create up to 7.5 lakh jobs.
Shailesh Chandra, President of the Passenger Vehicle Business Unit at Tata Motors, commented on the announcement saying: “As a homegrown leading automotive brand in India, we at Tata Motors are delighted to see the new Production-Linked Incentive (PLI) scheme announced today. The government has taken a holistic approach to make India ‘Aatmanirbhar’, especially in technology areas, that will be relevant and important in future. The scheme promotes manufacturing, export of electric vehicles and those running on hydrogen fuel cells, their supporting infrastructure, as well as new technology auto parts requiring advanced production techniques.”
Society of Indian Automobile Manufacturers (SIAM) President Kenichi Ayukawa had this to say: “SIAM is grateful to the Hon’ble Prime Minister, Hon’ble Minister of Heavy Industries, Secretary Heavy Industries, and all other policy makers in the Government involved in launching the PLI Scheme for the auto industry. The scheme will contribute towards reducing carbon emissions and oil imports with local manufacturing. SIAM will be happy to engage with the Ministry of Heavy Industries for detailing and fine-tuning, execution and further strengthening the scheme.”
Add EnergyNews.biz as a preferred source on Google
