Government issues Standard Operating Procedure under PLI Scheme for Automobile Sector

The Union government on Thursday announced the general guidelines for the production-linked incentive programs for the automotive industry, under which applicants can submit requests for the testing and certification of products utilizing advanced automotive technology in order to be thought about for incentives. Mahendra Nath Pandey the Minister of Heavy Industries, stated that these SOPs (standard operating procedures) will not only aid in achieving the Prime Minister's goal of Aatmanirbhar Bharat but will also aid in strengthening the manufacturing footing.

By doing this, the ministry hopes to increase domestic production, decrease reliance on imports, and increase employment prospects for Indians.

Additionally, Pandey stated that it would support the country's overall economic expansion. According to an official release, the program is expected to draw significant funding and assist India in becoming a center for vehicle production on a worldwide scale.

The Production Linked Incentive (PLI) Scheme for the Indian Automobile and Auto Component Industry (PLI-AUTO Scheme), with a financial commitment of Rs 25,938 crore, was released by the Ministry of Heavy Industries on 23 September 2021.

Incentives are proposed under the PLI-Auto Scheme to increase local production of Advanced Automotive Technology (AAT) goods and draw capital into the Value Chain of Automotive Manufacturing.

The programme has been split into two parts: Component Champions will produce high-value, high-tech components, and Champion OEM will Manufacture Electric or Hydrogen-powered Automobiles.

The heavy industries ministry announced on November 9, 2021, which types of 19 AAT vehicles and 103 AAT components will be included under the programme.

These parts are either the most recent or the Most Advanced Automobile Components, for which India has no supply chain or both. According to the statement, India would be able to grow its role in the global supply chains for Innovative Technologies and Automobiles thanks to this programme.