The government is believed to have cut the outlay for the automobile sector under the production-linked incentive (PLI) scheme to about Rs 26,000 crore and the proposal is expected to be approved by the Union Cabinet soon, sources said.

As per the info derived from one of the sources, it said, the Cabinet may take up the proposal for consideration next week. Component segments that are expected to be covered under the scheme include automatic transmission assembly, electronic power steering system, sensors, supercapacitors, sunroofs, adaptive front lighting, automatic braking, tyre pressure monitoring system, and collision warning system.

Auto industry body Society of Indian Automobile Manufacturers (SIAM) has earlier stated that the scheme announced by the government will increase competitiveness and take the growth of the sector to the next level. Last year, the government had announced a production-linked incentive scheme for the automobile and auto components sector with an outlay of Rs 57,043 crore, earmarked for five years.  The sources did not disclose the reason for revising the scheme to Rs 25,938 crore but stated that the focus is now more on battery electric and hydrogen fuel cell vehicles

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