‘PLI schemes have created deep localisation’

In an email interview, Union Heavy Industries and Steel Minister HD Kumaraswamy tells Rakshit Kumar about the government’s strategy to make India a leader in EV manufacturing. Edited excerpts

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How effective have been the production-linked incentive (PLI) schemes in accelerating electric-vehicles (EV) adoption?

The PLI schemes have played a significant role in boosting the adoption of EVs. By offsetting the high manufacturing costs, they have provided a major impetus to both established and emerging OEMs [original equipment manufacturers] in the country, making domestic EV production more viable.

The PLI auto scheme, with an outlay of ₹25,938 crore, has enabled component manufacturers as well as OEMs to manufacture advanced auto technology components and global quality-level EVs. Seventeen manufacturers have achieved the 50% DVA [domestic value addition] threshold required and have been given more than 107 PLI certificates for their products.

The PLI schemes have created deep localisation of advanced automotive technology [AAT] components, creating a robust domestic supply chain and reducing dependence on imports. Standard operating procedures [SOPs] for determining DVA and for claim filings have improved ease of doing business.

What has been the ministry's approach towards strengthening the EV sector's domestic capabilities instead of relying on imports?