Daily Current Affairs : 29-August-2023
In a bid to bolster the Indian automotive industry, the Ministry of Heavy Industries (MHI) recently hosted a pivotal conference to evaluate the Production Linked Incentive (PLI)-Auto scheme. Under the umbrella of “Excellence through Aatmanirbharta,” MHI is dedicated to supporting the industry’s growth. This essay delves into the PLI scheme for automobiles and auto components, shedding light on its significance and components.
Understanding the PLI Scheme
The Production Linked Incentive (PLI)-Auto scheme serves as a groundbreaking initiative to surmount the cost challenges hindering the Indian automobile sector in adopting advanced automotive technology. Launched in the fiscal year 2022–2023, the scheme is designed to span five years, promising substantial benefits to the industry.
Components of the PLI Scheme
The PLI-Auto scheme comprises two integral components, each catering to specific aspects of the automotive sector.
Champion OEM Incentive Program
Sales Value Linked
The Champion OEM Incentive Program is the first pillar of the PLI scheme. It operates on a “sales value linked” mechanism, offering incentives to automobile manufacturers across the board. These incentives extend to all segments, including battery electric and hydrogen fuel cell vehicles.
Component Champion Incentive Program
Sales Value Linked
The second crucial component of the PLI-Auto scheme is the Component Champion Incentive Program. Similar to the Champion OEM Incentive Program, this initiative follows a “sales value linked” approach. However, it is distinct in its focus, as it specifically targets pre-approved Advanced Automotive Technology (AAT) Products in the automotive industry.
Significance of the PLI-Auto Scheme
The PLI-Auto scheme holds immense significance for the Indian automotive industry, offering a multitude of advantages:
1. Encouraging Innovation
Under the PLI-Auto scheme, incentives are tied to sales value, which encourages manufacturers to innovate and enhance their products. This push for innovation is crucial for staying competitive in the global market.
2. Promoting Green Technology
By including segments for battery electric and hydrogen fuel cell vehicles, the scheme encourages the adoption of eco-friendly automotive technologies. This aligns with global efforts to reduce carbon emissions and combat climate change.
3. Boosting Economic Growth
The PLI-Auto scheme is expected to attract investments, create job opportunities, and stimulate economic growth in the automotive sector. This, in turn, will contribute to the overall economic development of the country.
4. Strengthening Self-reliance (Aatmanirbharta)
The scheme’s overarching goal of “Excellence through Aatmanirbharta” underscores the government’s commitment to making India self-reliant in the automotive sector. By promoting domestic production and reducing dependency on imports, the PLI-Auto scheme aligns with this vision.
Important Points:
- Understanding the PLI Scheme
- Aims to overcome cost barriers in adopting advanced automotive technology.
- Implementation over five years starting from 2022-2023.
- Components of the PLI Scheme
- Champion OEM Incentive Program
- Incentives tied to sales value for all automobile segments.
- Component Champion Incentive Program
- Sales value-linked incentives for pre-approved Advanced Automotive Technology (AAT) Products.
- Champion OEM Incentive Program
- Significance of the PLI-Auto Scheme
- Encourages innovation in the automotive industry.
- Promotes eco-friendly technologies like battery electric and hydrogen fuel cell vehicles.
- Expected to boost economic growth, create jobs, and attract investments.
- Aligns with the goal of self-reliance (Aatmanirbharta) by reducing import dependency.
Why In News
Recently, the Ministry of Heavy Industries (MHI) hosted a conference to assess the progress of the Production Linked Incentive (PLI)-Auto scheme, underscoring its dedication to driving the industry towards achieving the vision of “Excellence through Aatmanirbharta.” As part of its unwavering commitment, MHI aims to empower the automotive sector and foster self-reliance through strategic initiatives and incentives.
MCQs about The PLI-Auto Scheme
-
What is the primary objective of the Production Linked Incentive (PLI)-Auto scheme introduced by the Ministry of Heavy Industries (MHI)?
A) To increase the taxes on automotive products.
B) To reduce the sales value of automobiles.
C) To promote the adoption of advanced automotive technology.
D) To limit the production of eco-friendly vehicles.
-
Which of the following components is NOT a part of the PLI-Auto scheme?
A) Champion OEM Incentive Program
B) Component Champion Incentive Program
C) Sales Value Linked
D) Battery Electric Vehicle Incentive Program
-
What is one of the key advantages of the PLI-Auto scheme ?
A) Reducing carbon emissions through taxation.
B) Promoting domestic production and reducing import dependency.
C) Encouraging the sale of conventional gasoline-powered vehicles.
D) Eliminating job opportunities in the automotive sector.
-
How long is the PLI-Auto scheme designed to span?
A) One year
B) Three years
C) Five years
D) Ten years
Boost up your confidence by appearing our Weekly Current Affairs Multiple Choice Questions
