PLI-Auto Fuels Job Creation, Attracts Rs 75,000 Crore Investment: Minister Kumaraswamy

New Delhi, Sep 11 (KNN) The Production-Linked Incentive (PLI) scheme for automobiles and automotive components (PLI-Auto) has generated over 30,000 jobs, according to Union Heavy Industries Minister H.D. Kumaraswamy.

Speaking at the Society of Indian Automobile Manufacturers (SIAM) convention in New Delhi, the minister underscored the sector's role in employment creation and its contribution to the country's economic growth.

Kumaraswamy revealed that proposed investments under the PLI-Auto scheme have crossed Rs 75,000 crore, with 30,502 jobs created as of March 2024.

However, he clarified that actual investments under the scheme have so far amounted to Rs 17,896 crore.

The PLI-Auto scheme, launched in 2021 with an initial outlay of Rs 25,000 crore, aims to boost domestic production of automobiles and auto components, strengthening India's push for self-reliance in manufacturing.

In his address, Kumaraswamy highlighted the importance of government support through PLI schemes, including those for advanced chemistry cells and electric vehicles.

The PLI for advanced chemistry cells, with an allocation of over Rs 18,000 crore, is designed to develop 50 GWh of local battery storage capacity, with incentives already allocated for 30 GWh.

In addition to boosting manufacturing, the minister emphasised the government's focus on building electric vehicle (EV) charging infrastructure, particularly integrating it with renewable energy sources.

"While developing the charging infrastructure, we are conscious that integrating this infrastructure with renewable energy sources is essential for maximising the environmental benefits of electric mobility," Kumaraswamy stated.

The minister also praised the Scheme to Promote Manufacturing of Electric Passenger Cars in India, which allows companies to import completely built units (CBUs) of electric four-wheelers at a reduced customs duty of 15 per cent, compared to the usual 70-100 per cent.

To qualify for this benefit, companies must commit to investing at least Rs 4,150 crore in local production and achieve 50 per cent localisation within five years.

Furthermore, Kumaraswamy noted the government's ongoing support for the adoption of electric vehicles.

The Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles (FAME-II) scheme, launched with an outlay of Rs 11,500 crore, successfully provided subsidies to accelerate the adoption of EVs in India.

Following the expiry of FAME-II in March, the government introduced the short-term Electric Mobility Promotion Scheme (EMPS), allocating over Rs 1,200 crore to encourage the use of two- and three-wheeler EVs.

Kumaraswamy confirmed that the EMPS, which was set to lapse in September, would continue until the next phase of the FAME scheme is formally announced.

These initiatives underscore India's commitment to transitioning towards a green mobility ecosystem while fostering job creation and domestic manufacturing capabilities in the automobile and EV sectors.

(KNN Bureau)