Government’s productivity linked incentive (PLI) scheme for auto and component industry is set to change it in a big way through electric vehicles (EV), new technologies and new players in the market.

VE Commercial Vehicles Ltd, a joint venture between Volvo Group and Eicher Motors, are keen to take advantage of the productivity linked incentive (PLI) through expansion plans for electric vehicles.

According to an analysis done by Kotak Institutional Equities, the PLI scheme for autos provides incentives in the range of 13-18% of sales value to OEMs for manufacturing EVs in India.

It is estimated that over a period of five years, the PLI Scheme for automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore

Lucas TVS would be opening a Gigafactory in Thervoy Kandigai, Gummudipundi, by the second half of 2023. It would also build up production capacity to 10GWh in two stages.

Exide is planning to build a battery energy storage system for renewable power plants. It is conducting trials at CESC with lead-acid battery and at Tata Power with lithium battery technology.

DPIIT released the FAQs on the PLI scheme for white goods - ACs and LED lights. As per the FAQs, if any company fails to return the incentives and interest, their bank guarantee would be invoked.

The machine tools manufacturing sector was one of the worst-hit sectors during the COVID-19 pandemic. IMTMA expects the industry to grow around 8-10% due to infrastructure spending and investments.

This move is expected to attract an investment of Rs 400 billion, capacity addition of 25 million tonnes and create 52.5 billion jobs. Export of speciality steel will increase and bring forex of Rs 330 billion.