The Federal Cabinet Meeting, chaired by Prime Minister Narendra Modi, will be held today and has some important decisions, including a relief package for default telecommunications companies and an upcoming PLI for automobile companies. .. The Automotive Sector Production-Linked Incentives (PLI) scheme on the card aims to promote domestic manufacturing and create jobs. The government is believed to have reduced spending on this PLI scheme to around Rs 26,000. The PLI scheme for the automotive industry is part of the 2021-22 United Budget and has a spending of Rs 1.97 that covers the entire production-related incentives of at least 13 sectors. This scheme aims to scale the major sectors of the economy and develop global champions. In the past, many people and industry groups have voiced support for this scheme. SIAM has previously stated that the PLI scheme will make the automotive sector more competitive and take its growth to the next level. Meanwhile, Mahindra and Mahindra Chairman Anand Mahindra praised the plan and called the initiative “a dramatic change in attitudes towards the automotive industry.”
However, the government has announced plans for the automotive and auto parts sector for five years at a cost of Rs 57,043. In the automotive sector PLI scheme, the component segments that are expected to be covered by this scheme include automatic transmission assemblies, electronic power steering systems, sensors, supercondensers, sunroofs, adaptive front lights, automatic braking and tire pressure monitoring systems. , Collision, etc. Warning system.
Apart from PLI for the automotive sector, the card has a bailout package for debt-bearing carriers, and something could come out of today’s cabinet meeting. It was expected that the telephone company’s bailout package would come on September 8th, the last cabinet meeting. Among the measures being discussed in the telecommunications sector are payments, a four-year moratorium on AGR and spectrum, a redefinition of AGR to exclude non-telecommunications items, and reductions in spectrum usage fees. In addition to all these measures, some specific measures are expected to alleviate the cash flow problems faced by some players in the industry. On Wednesday, there may also be a moratorium on the payment of spectrum membership fees by carriers as part of a sector-oriented package aimed at giving bailouts to businesses. Telecom companies like Vodafone Idea have to pay thousands of rupees for past unspecified statutory membership fees.
Relief packages under consideration, as reported by many media houses. The telecommunications company will get the option to convert interest on the spectrum membership fee for a four-year moratorium period into government capital. Almost a week ago, some important decisions were made at a federal ministerial meeting that approved a proposal for a production-linked incentive (PLI) scheme for a particular segment of the textile sector. According to rating agency ICRA, Indian telecommunications companies could raise their debt levels to Rs 47,000 by March 2022, despite tariff increases.
The decision was made at a meeting chaired by Prime Minister Narendra Modi. The Cabinet has approved a PLI scheme for textiles in 10 segments / products of technical textiles with MMF (artificial fiber) apparel, MMF fabrics, and a budget expenditure of 10,683 rupees offered over a five-year period.
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PLI scheme for auto parts, telecom bailout package, what to expect
Source link PLI scheme for auto parts, telecom bailout package, what to expect