PLI Scheme for Auto Attracts Over Rs 67,600 cr Investment Proposals: Economic Survey 2024

New Delhi: The production linked incentive scheme (PLI) for automobile and auto components has so far attracted a proposed investment of Rs 67,690 crore, said Economic Survey 2023-24 tabled in Parliament on Monday.

A capital of Rs 14,043 crore has been invested till end-March 2024, it stated.

Applicants have proposed employment generation of 1.48 lakh, against which 28,884 of jobs have been generated till March 31, 2024, the Economic Surevy 2023-24 stated.

So far 85 applicants have got approval under the scheme, it noted.

The PLI scheme for automobile and auto components has a budgetary outlay of Rs 25,938 crore from FY23 to FY27.

The scheme has been sub-divided into champion OEM incentive scheme and component champion incentive scheme.

Besides, the government has approved the National Programme on Advanced Chemistry Cell (ACC) Battery Storage in May 2021 with a budgetary outlay of Rs 18,100 crore.

The growth in the value of domestic production and consumption of automotive parts moderated during FY20 to FY23, compared to the preceding five years, as per the latest Economic Survey.

In the first half of the last decade, passenger vehicles, such as cars and utility vehicles, experienced significant growth, it said.

However, the pandemic had a substantial impact on all segments of the automotive industry, it added.

"While passenger vehicles quickly recovered, the recovery period for two-wheelers, three-wheelers, and commercial vehicles is longer," it stated.

In FY24, the country produced around 49 lakh passenger vehicles, 9.9 lakh three-wheelers, 214.7 lakh two-wheelers, and 10.7 lakh commercial vehicles, it stated.

(Except for the headline, this story has not been edited by Republic staff and has been published from a syndicated feed)