Govt Plans Additional Incentives For EV Makers In Proposed PLI Scheme For Auto Sector To Boost Local Production: Report

Govt Plans Additional Incentives For EV Makers In Proposed PLI Scheme For Auto Sector To Boost Local Production: ReportAn electric car at a charging station. (Pixabay/MikesPhotos)

In a major push for attracting big investments towards domestic manufacturing of electric vehicles in India, the government is said to planning to offer a fresh set of incentives to companies as a part of its broader scheme for the auto sector, reports Economic Times.

The final details of the production linked incentives (PLI) scheme are expected within a month. With the details of the scheme being worked out, the government is reportedly expecting to attract as much as $14 billion of investments over a period of five years after implementation of the scheme.

Under the scheme, companies are likely to receive four to seven per cent cashbacks on the eligible sale and export value of vehicles and components from the government.

To give a further push to the manufacturing of electric vehicles in India, it is expected that the cashback on the eligible sale and export value of the EVs and their components will include an additional two per cent as a "growth incentive".

The scheme proposes financial incentives to help automakers overcome other shortfalls which make Indian manufacturing lesser competitive, like steep interest rates, power tariffs, higher logistics costs and poor infrastructure etc.