Modi government rained money on auto sector! Will get Rs 3,500 crore from PLI scheme
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New Delhi: To promote the production of electric vehicles in India, the government has proposed in the interim budget to increase the allocation amount under the Production Linked Incentive (PLI) Scheme for the auto sector by almost seven times for the next one year. In the expenditure budget presented in the Lok Sabha on Thursday, February 1, 2024, Finance Minister Nirmala Sitharaman has announced to allocate Rs 3,500 crore to the auto sector under the PLI scheme for the year 2024-25. However, this amount is seven times more than the estimated amount of Rs 433.77 crore allocated in the current financial year 2023-24.
Rs 250 crore for ACC and battery storage
According to the expenditure budget presented in Parliament by Finance Minister Nirmala Sitharaman, an amount of Rs 3,500 crore has been earmarked for the PLI scheme of vehicles and vehicle components in the financial year starting from April, which is Rs 483.77 crore in the current financial year. This is much more than the revised estimate of Rs. crore. Apart from this, the budget of PLI scheme for Advanced Chemical Cell (ACC) and Battery Storage has been increased from Rs 12 crore to Rs 250 crore in 2024-25.
Duration of PLI scheme extended by one year
Earlier, the Ministry of Heavy Industries has recently decided to extend the duration of PLI scheme for vehicles and vehicle components by one year. After this decision of the Ministry, this scheme is now applicable for five consecutive financial years starting from 2023-24. The Union Cabinet on September 15, 2021, had approved the PLI scheme for the auto sector with a budget outlay of Rs 25,938 crore for five years (FY 2022-23 to FY 2026-27).
Two big announcements for electric vehicle sector
Let us tell you that Finance Minister Nirmala Sitharaman has made two big announcements for the electric vehicle sector in the interim budget presented in the Lok Sabha. This will not only promote electric vehicles, but infrastructure will be developed to charge them. In his budget speech, he has announced the development of charging infrastructure in India through electric vehicle ecosystem. Along with this, he has also emphasized on increasing the use of electric buses in the public transport system. Not only this, the use of electric vehicles will also be increased in the private sector.
EV eco-system will be stronger
In her speech before presenting the interim budget in Parliament, Finance Minister Nirmala Sitharaman said the government aims to grow and strengthen the electric vehicle (EV) eco-system by supporting manufacturing and charging infrastructure. Apart from this, he also mentioned the launch of a new bio-manufacturing scheme to promote green development.
Employment generation through charging stations
Finance Minister Nirmala Sitharaman said that to promote electric vehicles in the country, the government will give new opportunities to set up new EV charging stations to increase the infrastructure of charging stations for electric vehicles, in which apart from the existing vendors, new people will also get the opportunity. . He said that the contribution of youth will be important in the development of infrastructure for charging stations of electric vehicles. He said that this will provide ample opportunities for employment to the youth in the EV charging sector. They will also be given training for this.
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