The Union Minister of State for Heavy Industries, Mr. Krishan Pal Gurjar informed that the Ministry of Heavy Industries (MHI) has launched two Production Linked Incentive (PLI) Schemes, namely PLI Scheme for Automobile and Auto Component Industry, and PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage.
The PLI Scheme for the automobile and auto components industry has been launched with a total budgetary outlay of US$ 3.17 billion (Rs. 25,938 crores) for a period of five years (FY23 to FY27) and was approved by the government with the goal of enhancing India's manufacturing capacity in the automobile and auto component sector. Over a period of five years, the total estimated employment generation is 1.45 lakhs (direct employment).
On the other hand, the PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage was approved with an outlay of US$ 2.21 billion (Rs. 18,100 crores) for seven years, in order to improve India's manufacturing capabilities of Advance Chemistry Cell (ACC) in India. The programme will result in 2.7 lakh jobs being created.
With the vision of Aatmanirbhar Bharat and to make India a self-reliant nation, MHI has launched the two schemes with the objective of Domestic Value Addition (DVA) in the products manufactured in India. In PLI Auto, a minimum of 50% DVA will be required to get the incentive, whereas, in the PLI ACC scheme, the beneficiary firms are required to achieve a minimum of 25% DVA by end of the second year and 60% by end of the fifth year of the scheme.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.