Companies enthusiastic about PLI scheme: Heavy industries secy Arun Goel

'There are many components of ICE vehicles that are not made in India and those will be incentivized', said Goel

The production-linked incentive (PLI) scheme for auto and drone industry is meant for new, advanced and green technologies, heavy industries secretary Arun Goel tells Shreya Nandi in an interview. He says the scheme will incentivise weak and non-existent supply chains. Edited excerpts:

Which segment will be the biggest gainer of the PLI scheme?

We are not categorising it in that manner. We want a certain amount of investment, say Rs 2,000 crore in the OEM category (for existing companies) over five years. It is Rs 1,000 crore for two- and three-wheelers, while it is Rs 250 crore for component makers. 

In case of new investors, it is Rs 500 crore for component makers and Rs 2,000 crore for OEMs. So anybody who brings such an investment, under any of these categories, can be eligible. 

The payout (incentive from the government) will be based on how much they produce and sell, but this will be applicable in the advanced automotive technology area. The scheme aims to incentivise advanced automotive technologies. We will incentivize supply chains that are weak, dormant or non-existent.

Will internal combustion engine- (ICE-) fitted vehicle makers get incentives under the scheme?

ICE is not a bar. ICE technology has been in vogue for more than 100 years. There is no need for the government to subsidise or incentivise it. Within ICE, globally, the share of advanced automotive technology will be 30 per cent by 2030 from the current 18 per cent. In India, it is 3 per cent, because we are a mass market. That’s why technologies of vehicles made in India are largely imported. For instance, sunroofs are completely imported in India today. That’s why we will incentivise them. There are many components of ICE vehicles that are not made in India and those will be incentivised. What we are not manufacturing today is electric vehicles, hydrogen fuel cell vehicles. So that will be incentivised.

Of the Rs 26,000 crore outlay earmarked, how much will be allocated towards green technologies such as EVs, hydrogen cell fuel vehicles or other sectors?

There is no such provision in the scheme. Whosoever comes forward will take the advantage. There is no bifurcation as such.

What is the kind of interest that has been generated during initial discussions with stakeholders? Can you name some of them?

They are very enthusiastic about the scheme. It’s unfair to share the names at this point.

Will Tesla be a big taker for the scheme?

This scheme is open to all categories that we have already mentioned. We are looking forward to participation by those who qualify that criteria.