Champion OEM Incentive Scheme

IN LINE WITH THE UNION BUDGET 2021-22 ANNOUNCEMENT OF THE PLI OUTLAY, THE GOVERNMENT OF INDIA APPROVED THE SCHEME FOR THE AUTOMOBILE INDUSTRY. ASHISH BHATIA VISITED THE FINE PRINT TO GAUGE THE INDUSTRY SENTIMENT.

- ASHISH BHATIA

In the Union Budget 2021-2022, under the Production Linked Incentive (PLI) scheme, Rs.1.97 Lakh crore was allocated for creating “global manufacturing champions” across 13 sectors including industries and services. Back then, the PLI scheme was expected to help the Indian auto industry to improve production efficiency and become self-reliant or ‘AtmaNirbhar’. The allocation of Rs.57,042 crore by the Union Cabinet with the Department of Heavy Industries as the implementing ministry was looked at as a step in the right direction. One that would help the industry generate employment and boost economic growth. It will aid in the transformation of the automotive manufacturing base, as per Chandrajit Banerjee, Director General at CII. “This will add to the country’s cost-competitive value chain, de-risk the supply chains and go a long way in developing the country as a world-class self-reliant, globally competitive, and future-ready automotive manufacturing base,” he opined.