Prime Time Zone, Webdesk: Companies are no longer likely to face tough regulations if they want to get a PLI scheme in the automotive sector. Information that the government is considering setting stricter criteria for vehicle manufacturers to qualify for financial subsidies under the Product Connectivity Incentive (PLI) scheme. The new regulations will increase domestic production capacity to international standards.
Along with the Ministry of Commerce, the Ministry of Heavy Industries and Public Enterprises hopes to implement standard management policies based on the increase in export earnings from base year instead of the total revenue from goods shipped in a particular year. In addition, the ministry is of the view that the base year should be changed from 2019-20 to the 2018-19 financial year. Also, the ministries hope to reduce the export distance to neighboring countries from 3,000 km to 2,500 km.
Currently, Maruti Suzuki India, Hyundai Motor India and Ford Motor India are the major passenger vehicle exporters domestically. Bajaj Auto and TVS Motor Company are key exporters in the two-wheeler segment. More details about the PLI scheme are likely to be officially announced in April. In November last year, the Center announced a PLI scheme in 10 sectors to boost local manufacturing and improve exports. The automotive sector, including vehicle manufacturers and spare parts suppliers, will get Rs. The Center will provide subsidies of Rs 57,000 crore.
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