The government is committed to enhancing the globalization of the Indian Automotive Sector says the Minister of Heavy Industries.
PUNE: Dr. Mahendra Nath Pandey, Minister of Heavy Industries, (MHI) Government of India speaking at a Press Conference after the industry interaction meet organized by the Ministry of Heavy Industries, GOI in association with ARAI, SIAM, and ACMA to share information about the production linked incentive scheme (PLI) for the automotive sector. The program was held at Bajaj Art Gallery, MCCIA on Senapati Bapat Road. Dr. Reji Mathai, Director ARAI, Amit Mehta, Joint Secretary of MHI, and Prashant Banerjee, Executive Director, SIAM were present on the occasion.
“The auto field contributes to about 14-15 % GDP, which can go up to 25-30 % and can support the PM’s vision for making India a USD 5 trillion economy. The sale of Electric Vehicles has increased drastically in the last few months due to the various schemes and subsidies provided by the government for encouraging the use of Electric Vehicles. However, there are various challenges we have to counter including the price and the charging infrastructure. To overcome one of these problems related to charging, I am going to urge the Automotive Research Association of India (ARAI) to develop the technology that reduces the charging time,”
“Since charging is the main concern when it comes to the use of EVs, the Government has chosen 9 expressways where 6,000 charging stations have been sanctioned and about 3,000 shall be installed soon. The Advanced Chemical Cell (ACC), which is the main component of the EV battery is currently imported. About 30 percent of the cost of the EV is the cost of the battery itself. This can reduce if it is locally produced. This is possible because about 70 percent of the material used in the manufacturing of lithium-ion batteries is already available in India. With these newly introduced PLI schemes, the government is providing support up to Rs. 362 Crore per Gigawatt in this sector of EVs,” Pandey said.
He also emphasized the government’s FAME I and II (Faster Adoption and Manufacturing of Hybrid and EV) scheme, which has now been further extended by another two years to March 31, 2024.
“With the Production-Linked Incentive (PLI) Scheme, it will lead to an investment of Rs. 42,500 Cr. and will further accelerate manufacturing of components and batteries in India. The government is providing financial support up to 8-13 % for Auto Component manufacturers and up to 13-18 % for EV manufacturers through the scheme. This will also facilitate the creation of about 7.5 lakh new advanced-level employment opportunities,” he added.
Considering the increase in the usage of drones in coming years for various applications, the Ministry of Heavy Industries has sanctioned Rs 120 Cr for research and other related work in this regard. Further action for the same will be initiated by the Ministry of Civil Aviation, the minister informed.
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