To promote the manufacturing sector in the country, the government has started the Production Linked Incentive Scheme (PLI Scheme) for different sectors. Now out of this, the government is going to give a big relief to the auto sector. So that auto sector companies can take advantage of it fast.
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Modi government at the center (Modi Govt.) To reduce the employment crisis, it is constantly paying attention to the manufacturing sector. For this ‘Make in India’ (Make in India) and ‘Production Linked Incentive Scheme’ (PLI Scheme) has also been launched. Now the government is going to give a big relief to the auto sector to take advantage of the PLI scheme. Anyway, India is one of those top-5 countries in the world. (Top-5 Automobile Producer in World) It is one of the largest producer of automobiles.
The Indian government wants auto companies to take maximum advantage of the PLI scheme. The government has fixed an amount of Rs 25,929 crore under the PLI scheme for the auto sector. Now auto makers and companies making vehicle components will not have to give many complex information related to localization, as was done earlier.
Now work will be done with these details only
According to the new system, now auto companies will have to give sourcing and pricing details of all the parts taken from Tier-1 or direct suppliers only, which have been used in the vehicle. Whereas earlier the companies had to give information about Tier-3 or sub-contractors in this matter.
This step has been taken by the government at a time when auto makers and component makers are facing difficulty in submitting more documentation and information related to localization.
The path of auto companies will be easy
This step of the government will make it easier for companies to take advantage of the PLI scheme. ET has reported, quoting official sources with knowledge of the matter, that this is due to the ‘standard practice’ associated with the implementation of the scheme. (Standard Operating Procedures-SOPs) Will become better
At present, the Ministry of Heavy Industries is preparing a draft SOP for the PLI scheme for the auto sector in collaboration with auto makers and vehicle component companies.