Takinng a giant step towards Prime Minister Narendra Modi‘s dream of ‘Aatmanirbhar Bharat’, the Union Cabinet on Wednesday announced a host of reforms for three sectors — auto, drone and telecom industry. These measures are aimed at making India more efficient and competent in manufacturing and generate employment. Union Cabinet minister Anurag Thakur announced the Production-Linked Incentive (PLI) scheme for for automobile sector and drone industry with a budgetary outlay of ₹ 26,058 crore. This scheme envisages to overcome the cost disabilities to the industry for manufacture of advanced automotive technology products in India. Both the existing automative companies and new investors will be able to avail the benefits under the PLI scheme. “It will herald a new age in higher technology, more efficient and green automotive manufacturing,” the government mentioned in a statement.
The PLI scheme will bring fresh investments of over Rs 42,500 crore in five years and incremental production of over Rs 2.3 lakh crore, Thakur said.
“The PLI scheme has given the drone industry the much needed recognition. The PLI scheme coupled with the new liberalised norms to operate in various distance and segment will bring positive change to the sector and a 15 – 20 % growth can be expected in Q4 of this financial year for the sector. Further, the move coupled with policy easing has the potential to create new avenues of job opportunities. Some of the profiles who will be able to reap the benefits are UAV engineers , UAV pilot , UAV operators etc,” said Gautam Vohra, VP and business head, telecom and engineering Staffing, TeamLease Digital.
In a similar way, the Union cabinet on Wednesday approved a number of structural and process reforms in the telecom sector. These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on telecom service providers, the government further added.
Telecom Minister Ashwini Vaishnaw said that the central government has allowed a four-year moratorium on all dues that telecom operators have to pay to the government, including annual payments of dues arising out of the AGR judgment and spectrum purchased in past auctions, excluding the March 2021 auction. Moreover, the government has also allowed 100 per cent FDI (foreign direct investment) in telecom via the automatic route. The relief package for the telecom sector will come as a breather to the three private players, believed analysts.
“The measures announced for the telecom and auto industry are sweeping with potential for far-reaching beneficial impact. A four-year moratorium on dues of the telecom sector which covers AGR, spectrum dues and interest payment will bring big relief to the cash-strapped sector. This is positive for banks, too, since banks’ exposure too will decline significantly. 100% FDI in telecom and redefinition of AGR excluding non-core revenue are welcome steps that can stimulate investment in the industry,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.