GOVERNMENT TO CONSIDER Rs 13000-CRORE PACKAGE FOR AUTO PART MANUFACTURERS
The Indian Government is considering a package of Rs 13000-crore for the auto part industry in order to boost the domestic production of auto components in India and thereby cut the dependence on imports. This new scheme will be separate from the existing Production Linked Incentive (PLI) scheme and will focus on the entire value supply chain.
The proposal of this new scheme is currently being finalized by the ministry of heavy industries which will likely provide two types of incentives - fiscal and non-fiscal. The fiscal part will include operational expenditure on support, skill development and R&D, whereas the non-fiscal part will be to encouraging the integration of digital technologies and enhanced manufacturing standards to improve efficiency, as well as promoting joint ventures (JVs), foreign collaborations, and free trade agreements (FTAs) to expand global market access.
Some of the companies that stand to benefit from this scheme are