Mahindra Group Chairman Anand Mahindra lauded the new PLI (Production Linked Incentive) scheme for the auto sector approved by the Union Cabinet on social media.

“Some may think that existing OEMs like us will be disappointed that this scheme focuses on renewable energy vehicles. Frankly, we believe this is a transformational policy change & signals to the world that India intends to be a force in the future of Automobiles,” Mahindra wrote on Twitter.

The Union Cabinet on Wednesday approved the PLI scheme with incentives of ₹26,058 crore to be provided over five years in a bid to promote advanced technologies, including clean energy.

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“The auto sector is expected to attract fresh investments of over ₹42,500 crore in the five years and incremental production of over ₹2.3-lakh crore with the introduction of the PLI scheme,” a government statement said.

The scheme consists of two components. The first, called the Champion OEM Incentive Scheme, is a ‘sales value linked’ plan, applicable to Battery Electric and Hydrogen Fuel Cell Vehicles of all segments.

The second, the Component Champion Incentive Scheme, is a ‘sales value linked’ plan for advanced technology components, Completely and Semi-Knocked Down (CKD/SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles and tractors.

Also read: ‘PLI approved is timely, to help revive sectoral growth’

The PLI Scheme is open to existing automotive companies as well as new ones currently not in the automobile or auto components manufacturing business.

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