The government expects that at least 7.5 lakh additional jobs will be created because of the Production Linked Incentive (PLI) scheme in the auto sector, Arun Goel, Secretary, Ministry of Heavy Industries, told ANI.
In Union Budget, Finance Minister Nirmala Sitharaman has announced that 60 lakh jobs will be generated in the next five years through the PLI scheme.
The Ministry of Heavy Industries on Friday approved 20 applicants under "Champion OEM PLI Scheme.
Goel said that auto companies had proposed an investment of Rs 45,016 crore under the PLI scheme.
"We had opened the application window of 60 days, which closed on January 9 this year. We received a total of 115 applications, 87 under the Auto component category and 38 under the OEM, that's the vehicle category. Five applicants applied in both categories. So we have 120 applications from 150 applicants," he said.
As regards the 92 applications of auto components, they are in the process and will take three to four weeks more time. However, on the OEM category, the 28 applications have been processed and we have declared 20 applicants eligible, the secretary said.
Goel said that after these companies have been selected, each company has to submit its production to the testing agencies, one of the conditions for the product selection is that at least 50 per cent value addition must be domestic or Made in India.
"We will check by going up to tier three, not that you can tighten the screws and get the benefit, which means a large number of jobs shall get created in the MSME sector," Goel said.
Talking about the incentives given to electric vehicles Goel said that broadly India is offering the best incentive in the world for electric vehicles and this is obviously going to result in the increase of battery electric vehicles on the roads manifold and will help in boosting the electric vehicle's ecosystem.
PLI scheme for automobile and auto components (Rs 25,938 crore) and PLI for ACC (Rs 18,100 crore) along with FAME Scheme (Rs 10,000 crore)to enable India to leapfrog to environmentally cleaner, sustainable, advanced, and more efficient Electric Vehicles (EV) based system.
( With inputs from ANI )
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