Government To Soon Issue SOPs For INR 26,000 Crore Auto PLI: Report
The market estimates reported that as of 2022, India is the third largest automobile market in the world, surpassing Japan and Germany in terms of sales
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The government will soon issue the standard operating procedure (SOP) for availing benefits under the INR 25,938 crore performance linked incentive (PLI) for automobile and auto-component industry, according to an ET report.
"A draft SOP has been prepared in consultation with the players that were shortlisted. Issues regarding documentation required to establish local sourcing have been addressed," reported ET citing a senior government official.
A Standard/Safe Operating Procedure (SOP) allows workers to perform their job in a consistently safe manner. These Automotive related Standard/Safe Operating Procedures have clear step-by-step instructions for carrying out work activities and are ideal for businesses looking to improve their safety systems. It includes a wide range of businesses involved in design and engineering, manufacturing, logistics, warehousing, marketing and selling, and after-sales services of motor vehicles comprising passenger cars, two-wheelers, utility vehicles, pick-up vans and trucks, delivery and transport trucks, buses, etc.
According to the ET report, concerns had been raised about the long list of information and details the companies had to submit to claim benefits under the programme aimed at boosting domestic manufacturing. Some 115 companies had filed applications under the PLI Scheme for automobile and auto component industry which was notified in September 2021.
The scheme for the auto sector envisages overcoming the cost disabilities to the industry for the manufacture of advanced automotive technology products in India. While announcing the PLI scheme for auto sector in 2021, Union minister Anurag Thakur had said that, "It is estimated that over a period of five years, the PLI scheme for automobile and auto components industry will lead to a fresh investment of over INR 42,500 crore, incremental production of over INR 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs."
The market estimates reported that as of 2022, India is the third largest automobile market in the world, surpassing Japan and Germany in terms of sales. Currently India's auto industry is worth more than $100 billion and contributes 8% of the country's total export and accounts for 2.3% of India's GDP.