Mega Boost for Drones; Paperless KYC for Telecom Operators

In a bid to boost jobs and revive the sectors after Covid-19 pandemic, the Union Cabinet on Wednesday has announced a host of measures. The aim is to create jobs and boost the manufacturing sectors across the country. “The government has approved production linked incentive scheme for auto industry, auto-component industry, drone industry to enhance India’s manufacturing capabilities, Union minister Anurag Thakur said on Wednesday.

India’s share in global auto sector is 2 per cent and there is a need to increase it, said Thakur. Union Cabinet on Wednesday approved the revised production-linked incentive (PLI) scheme for the automobile sector worth Rs 26,000 crore. Last year, the government had announced the scheme for the automobile and auto components sector with an outlay of Rs 57,043 crore, earmarked for five years. It has been reduced to Rs 25,938 crore because the scheme will now only incentivize makers of electric and hydrogen fuel cell vehicles, sources had earlier said.

Commenting on the scheme, Saurabh Kanchan, Partner, Deloitte India said, “Incentivizing new products such as the electric vehicles and alternate fuels as well as advanced technologies such as ADAS, ABS and AT is a welcome move. This would aid in their localization and wider adoption, thereby enhancing safety and consumer experience. There also appears to be incentivization of conventional technology based automotive components. The overall approach appears to be balanced, though review of the outlay would be welcome as industry was anticipating incentives in line with the initial announcements. Investment and sales targets would now determine the response of the industry.”