Government Brings BS VI-Compliant Flex Engines, Other Parts Under Auto PLI Scheme
The government has widened the scope of its production-linked incentives for the automobile sector.
The Indian government has widened the scope of its production-linked incentives for the automobile sector by bringing under its ambit BS VI-compliant flex engines and alternate fuel systems powered by compressed and liquefied natural gas, among other parts.
The components were part of a notification issued by the government on Thursday on the structured list of PLI parts and procedural details and advanced automotive technology products that are eligible for the incentives. The government, in its notification, has included more than 100 advanced technologies under the scheme.
The Society of Indian Automobile Manufacturing Association said that based on its preliminary observation the list of AAT parts is broad-based and well-structured across themes.
“SIAM members will study in detail both the list and the procedure and discuss with MoHI with feedback, if any,” said Rahul Bharti, chief engagement officer of the association, was quoted as saying in a statement.
In September, the union cabinet slashed the outlay for production-linked incentives for the auto sector by half to about Rs 26,058 crore, with major thrust to electric vehicles and hydrogen fuel cells.
The scheme which is set to boost manufacturing capabilities of the automobile sector is part of the overall production-linked incentives announced for 13 sectors in the budget 2021-22 with a total outlay of Rs 1.97 lakh crore.
Based on the list, nearly 20 components are part of the hydrogen fuel cell vehicle system, including fuel cells, hydrogen injection system and others. The scheme has also included e-quadricycles that's set to benefit companies like Bajaj Auto Ltd. and Mahindra and Mahindra Ltd.