'PLI for auto aims to ramp up new technologies in the sector'

PLI scheme for the auto sector primarily aims to target two areas. OEM incentive scheme is linked to value sales and is applicable on battery electric and hydrogen fuel cell vehicles of all segments

The newly-introduced production-linked incentive (PLI) scheme for the automobile sector is aimed at augmenting India's capabilities in new technologies. The project, worth Rs 26,000 crore of government incentives, will help grow India's share in advanced automotive technologies and bring it closer to global standards, said Arun Goel, secretary, Ministry of Heavy Industries.

Under the scheme, projects that focus on newer segments, such as electric and hydrogen fuel cell vehicles, will be incentivised. Existing technologies in the internal combustion engine (ICE) space will be kept out of the purview of the new PLI.

“Since ICE is an old technology, there is