The Union Cabinet on November 11 gave nod to Production Linked Incentive or PLI scheme for as many as 10 sectors, the news report said citing sources which reported to a leading business channel.
Under the scheme the total outlay is likely to be to the tune of Rs. 1.46 lakh crore over five years term. And among the various sectors, highest incentive has been earmarked for the auto and auto-ancillary sector of Rs. 57000 crore. Other sectors considered for the PLI scheme include advance cell chemistry battery, pharmaceuticals, food products and white goods.
As part of the scheme, the government will dole out incentives for additional production and will also allow companies to engage in export of products manufactured in the country.
On the news, auto stocks spurted with Nifty Auto up over 1 percent, with Hero Motocorp, Maruti Suzuki leading the list of gainers.