September 30, 2023

The government is expected to issue SOP, the Standard Operating Procedure (SOP) to avail of the INR 25,938 crore performance-linked incentive (PLI) for the automobile and auto components, according to the ET report.
“A draft SOP has been prepared in consultation with the players that were shortlisted. Issues regarding documentation required to establish local sourcing have been addressed,” the report by ET the source, citing an official of the senior government.
A Standard/Safe Operating Methodology (SOP) permits workers to carry out their duties consistently and safely. The Automotive-associated Standard Operating Procedures provide clear step-by-step guidelines for carrying out the tasks and are great for companies seeking to enhance their safety procedures. It covers a broad range of businesses that are involved in engineering and design manufacturing logistics, logistics, and warehouses, as well as selling and marketing and after-sales service of motor vehicles that include two-wheelers, passenger cars, pickup vans, utility vehicles, and trucks as well as transport and delivery buses, trucks, etc.

As per the ET report, concerns have been raised regarding the lengthy list of details and information the firms had to submit to receive benefits under the scheme that aims to increase manufacturing in the US. Around 115 companies submitted applications for benefits under the PLI Scheme for automobile and auto component industries. They were notified in September 2021.
The auto industry plan aims to solve the cost limitations in the sector for manufacturing high-end automobile technological items in India. In the announcement of the PLI scheme for the auto sector in 2021, Union Minister Anurag Thakur said, “It is estimated that over five years, the PLI scheme for automobile and auto components industry will lead to a fresh investment of over INR 42,500 crore, incremental production of over INR 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.”
According to market estimates in 2022, India will be the third-largest automotive market globally, surpassing Japan and Germany by sales. At present, India’s automobile industry is worth over $100 billion, accounts for 8% of India’s total exports, and is responsible for 2.3 percent of the country’s GDP.

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