New Delhi, Dec 14 Minister of State for Heavy Industries Krishan Pal on Tuesday said in the Lok Sabha that the Production Linked Incentive (PLI) in the automobile sector will boost the cost-effective production in India.
Replying to a question during the 'Question Hour', he said that the PLI scheme aims to work towards manufacturing four-wheelers with improved technology.
"We will encourage our industries to invent technology so that we are able to produce four-wheelers including cars with advanced technology, fuel efficiency and improved safety features at a lower cost."
He also said, "We have to import technology from abroad and have to pay heavy price on the components being imported from the foreign countries.
"Under the PLI, we will develop the technology under 'Aatmanirbhar Bharat' mission and this will not only curb the import of the technology and components but will bring investment in the country," Pal said.
He said that old technologies being used to manufacture cars and other four-wheelers, was the major cause of high prices.
"Once we bring forth the latest technology, costs will go down since we will be able to produce locally. The global automobile industry is worth 15 billion US dollars, but India has less than two per cent share in this segment. This will improve with the PLI scheme," the Minister said, adding that new employment avenues will also be opened in the automobile sector.
Congress MP Ravneet Singh mentioned that as of now the automobile sector has been bearing losses every day and companies like Ford have closed their manufacturing units in India. The government needs to take measures to stop the closure of such automobile companies, he said.
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