The Union government added more than 100 advanced technologies, including alternate fuel systems like compressed natural gas (CNG) & Liquified natural gas (LNG) under the production-linked incentive (PLI) scheme for automobiles.

Key Facts

• Now the scheme will also cover Bharat Stage VI compliant flex fuel engines, advanced driver assist system, e-quadricyle and electronic control units (ECU) for safety.
• Before this move, government has included only two-wheelers and four-wheelers under PLI scheme.

What is PLI Scheme for automobiles?

Union Cabinet had approved the PLI scheme for automobiles with an outlay of Rs 25,938 crore, in September 2021. This scheme aims to incentivise high-value advanced automotive technology vehicles and products like adaptive frontlighting, sunroofs, tyre pressure monitoring system, automatic braking, and collision warning systems, for auto industry. It also aims to boost manufacturing capability in the automobile sector, including hydrogen & electric fuel cell vehicles.

Aim of the incentive under PLI Scheme

The incentive structure under the PLI Scheme aims to encourage industry for making fresh investments for the purpose of indigenous global supply chains of advanced automotive technology products.