New Delhi. The Union Cabinet is likely to approve the Revised Production Based Incentive (PLI) scheme for the auto sector on Wednesday. Giving this information on Tuesday, sources said that the objective of this scheme is to encourage domestic manufacturing and generate employment.
Sources said that the government is understood to have reduced the expenditure for the PLI scheme for the auto sector to Rs 26,000 crore. Last year, the government announced the PLI scheme for the vehicle and vehicle parts sector. An amount of Rs 57,043 crore was kept under this scheme in five years.
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A source said that the Union Cabinet is likely to consider the proposal in its meeting on Wednesday. The sources, however, did not give any reason for revising the scheme allocation to Rs 25,938 crore. Sources said the government now wants to focus on battery electric and hydrogen fuel cell vehicles.
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Components under this plan will include automatic transmission assembly, electronic power steering system, sensors, supercapacitors, sunroof, adaptive front lighting, automatic braking, tire pressure monitoring system and collision warning system.
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