Mahindra Group chairman Anand Mahindra and Ola Cabs founder and CEO Bhavish Aggarwal have hailed the Centre’s decision for clearing the PLI scheme for the auto sector.
Anand Mahindra called the PLI scheme for the auto sector a ‘transformational policy change’. On the opposite hand, Aggarwal called it a ‘visionary step’.
Mahindra during a tweet wrote, “Some might imagine that existing OEMs like us are going to be disappointed that this scheme focuses on renewable energy vehicles. Frankly, we believe this is often a transformational policy change”.
He said that the auto PLI scheme may be a signal to the planet that India could become a force within the way forward for automobiles.
“…signals to the planet that India intends to be a force within the way forward for Automobiles,” the business tycoon added.
While Aggarwal, striking an optimistic tone on the scheme, said, “India is prepared to reject petrol and fully plan to electric!”. He also shared a song of legendary American singer-songwriter Dylan , ” the days they’re A-Changin” song to eliminate confusion.
Yesterday, the Central Government approved a 25,938-crore PLI scheme for the auto sector focused on promoting the manufacturing of advanced automotive engineering products like electric and hydrogen-fuel vehicles.
Last year, the govt had announced a scheme for the car and auto components sector with an outlay of ₹57,043 crore, earmarked for five years.
Union Minister Anurag Thakur said that the scheme for the car industry will cause a fresh investment of over ₹42,500 crore, incremental production of over ₹2.3 lakh crore and can create additional employment opportunities of over 7.5 lakh jobs.
Several industry experts have also welcomed the government’s move. Saurabh Kanchan, Partner, Deloitte India said, “This would aid in their localization and wider adoption, thereby enhancing safety and consumer experience”.
Mahua Acharya, director and CEO of Convergence Energy Services Ltd, said the scheme will provides a big boost to the electrical mobility ecosystem and has the potential to draw in large-scale investments over subsequent few years.