Indian Economy News

The Ministry of Heavy Industries takes measures to transform the country into a global supplier base for global Original Equipment Makers

The Ministry of Heavy Industries (MHI) has implemented several strategic measures to position the country as a global supplier of Original Equipment Manufacturers (OEMs). Notable initiatives include:

1. National Programme on Advanced Chemistry Cells (ACC) Battery Storage

• Approved on May 12, 2021, the Production Linked Incentive (PLI) scheme for ACC Battery Storage aims to foster domestic manufacturing with a budgetary allocation of Rs. 18,100 crores (US$ 2.17 billion).
  • The scheme targets establishing a cumulative ACC battery manufacturing capacity of 50 GWh.

2. PLI Scheme for the Automobile and Auto Component Industry:

• With a budgetary outlay of Rs. 25,938 crores (US$ 3.11 billion), the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry incentivizes the production of Advanced Automotive Technologies (AAT) products, including electric vehicles and their components.

3. Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme:

• Notified by the Ministry of Heavy Industries, this scheme spans five years from April 1, 2019, with a total budgetary support of Rs. 10,000 crores (US$ 1.19 billion).
• Focused on promoting the electrification of public and shared transportation, the scheme provides demand incentives for various electric vehicles, including e-buses, e-3 wheelers, e-4 wheelers, and e-2 wheelers. Additionally, support for the creation of charging infrastructure is a key component.

In the second phase of the FAME India Scheme, electric vehicle manufacturers have received subsidies totalling Rs. 5,283 crores (US$ 633.46 million) for the sale of 1,175,888 electric vehicles as of December 8, 2023.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.