Auto PLI Scheme: Heavy Industries Minister Mahendra Nath Pandey on Thursday expressed hope that the Auto PLI Scheme scheme for the auto sector will help attract American electric car maker Tesla to manufacture in India. Pandey said that the scheme will help boost the growth of the auto industry and make it globally competitive.
The Union Cabinet has approved the Production Based Incentive (PLI Scheme) scheme of Rs 26,058 crore for the Vehicles, Vehicle Components and Drone Industry. Asked whether the plan would help attract a US firm to set up a manufacturing base in India, Pandey said, “Tesla will definitely be attracted to this plan. I hope.”
42500 crore investment will come, 7.5 lakh job opportunities will be created
An official statement said on Wednesday that the PLI scheme for the auto and auto parts industry will result in fresh investment of over Rs 42,500 crore over five years and increased production of over Rs 2.3 lakh crore. Along with this, new opportunities of more than 7.5 lakh jobs will be created. The PLI scheme for the vehicle sector will encourage high value advanced automotive technology vehicles and products. This will usher in a new era in high technology, more efficient and green vehicle manufacturing.
Tesla calls for cut in import duty
The minister said that Tesla has asked for some tax concessions, but it should take the first step and then the government will consider their demand. Tesla has demanded a reduction in the import duty on electric vehicles (EVs) in India. The US company has urged the government to standardize tariffs on non-customs value-priced electric cars to 40 per cent and withdraw the social welfare surcharge of 10 per cent on electric cars.