PLI-Auto Fuels to create jobs, attract Rs 75,000 crore investments: Minister Kumaraswamy

New Delhi, September 11 (KNN) According to Heavy Industries Minister HD Kumaraswamy, the Production Linked Incentive Scheme for Automobiles and Auto Components (PLI-Auto) has created over 30,000 jobs.

Addressing a convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, the minister highlighted the role of the sector in creating employment and its contribution to the country’s economic growth.

Kumaraswamy revealed that the proposed investment under the PLI-Auto scheme has crossed Rs 75,000 crore and 30,502 jobs have been created by March 2024.

He, however, clarified that the actual investment under the scheme so far was Rs 17,896 crore.

The PLI-Auto programme, launched in 2021 with an initial outlay of Rs 25,000 crore, aims to boost domestic production of cars and auto components and strengthen India’s drive towards self-sufficiency in manufacturing.

In his speech, Kumaraswamy emphasised the importance of government support through PLI programmes, which include advanced chemistry cells and electric vehicles.

The Advanced Chemistry Cells (PLI) programme, for which over Rs 18,000 crore has been allocated, aims to develop 50 GWh of local battery storage capacity, with incentives already in place for 30 GWh.

The Minister stressed that in addition to increasing production, the government is focusing on building charging infrastructure for electric vehicles (EV), in particular integrating it with renewable energy sources.

“When developing charging infrastructure, we recognise that integrating this infrastructure with renewable energy sources is essential to maximising the environmental benefits of electric mobility,” said Kumaraswamy.

The minister also praised the India Electric Passenger Vehicle Manufacturing Promotion Scheme, which allows companies to import fully built units (CBUs) of four-wheeler electric vehicles at a reduced customs duty rate of 15 per cent compared to the standard rate of 70-100 per cent.

To be eligible for this relief, companies must commit to investing at least Rs 4,150 crore in local production and achieve 50 per cent localisation within five years.

Kumaraswamy further noted that the government continues to support the popularisation of electric vehicles.

The Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles (FAME-II) Scheme, launched at a cost of Rs 11,500 crore, successfully provided subsidies to accelerate the adoption of electric vehicles in India.

After the FAME-II scheme expired in March, the government introduced the short-term Electric Mobility Promotion Scheme (EMPS), allocating over Rs 12 billion to encourage the use of two- and three-wheeler electric vehicles.

Kumaraswamy confirmed that the EMPS programme, which was set to expire in September, will remain in force until the next phase of the FAME programme is formally announced.

These initiatives underscore India’s commitment to transitioning towards a green mobility ecosystem, while supporting job creation and developing domestic manufacturing capabilities in the automotive and electric vehicle sectors.

(KNN Office)