Union Cabinet approves Rs 26,058 crore PLI scheme for auto and drone sectors

The Union Cabinet on Wednesday approved a Rs 26,058 crore production linked incentive (PLI) scheme for auto, auto-components and drone industry to enhance India's manufacturing capabilities, Union Minister Anurag Thakur said on Wednesday.The PLI scheme will incentivize the emergence of advanced automotive technologies' global supply chain in India.It would help create additional employment of over 7.6 lakh people.Incentives worth Rs 26,058 crore will be provided to industry over five years, the minister said, adding that Rs 120 crore to be allocated for drone PLI schemeThe PLI scheme will bring fresh investments of over Rs 42,500 crore in five years and incremental production of over Rs 2.3 lakh crore, he said.He said the champion auto companies will have to make investments of Rs 2,000 crore of new investments over five years, whereas 2-wheelers & 3-wheelers have to make investments of Rs 1,000 crore. The component makers will have to make investments of Rs 500 crore over five years under the PLI scheme, added Thakur.Govt expect Rs 5,000 crore of investments in Indian drone industry. Expect tier-one companies to qualify for auto PLI scheme. New non-automotive investors with net worth of Rs 1,000 crore will qualify for the scheme, Thakur further said.