PLI scheme, rationalising AGR, digitised KYC: Centre announces big reforms in auto, telecom sectors

The central authorities has accepted a production-linked incentive (PLI) scheme for the auto business, auto-component business and drone business to boost India’s manufacturing capabilities, mentioned Union minister Anurag Thakur on Wednesday.

During a cupboard briefing, Anurag Thakur mentioned the federal government has accepted the PLI scheme in the auto and drone industries. He mentioned Rs 26,058 crore has been allocated to both these sectors for the next five years — Rs 25,938 crore to the auto sector and Rs 120 crore to the accomplished sector.

A complete of Rs 4,75,00 crore has been “additionally provided for the next five years”, he mentioned.

“The PLI scheme for drones will bring fresh investments of over Rs 5,000 crore in three years and incremental production of over Rs 1,500 crore,” the federal government mentioned.

This scheme will ultimately “enable India to leapfrog to environmentally cleaner, electric vehicles and hydrogen fuel cell vehicles”, the federal government mentioned.

The PLI scheme for the auto sector may even create further employment of over 7.6 lakh individuals, the federal government mentioned. This may even create an funding alternative of Rs 42,500 crore in 5 years.

“The automobile industry contributes to 35 per cent of the manufacturing GDP of the country. It is a leading sector in generating employment. If we speak of the global automotive trade, then we need to increase India’s participation,” Anurag Thakur mentioned.

“Speaking of new technology, the PLI scheme has been brought keeping in mind the needs of the present as well as the future, and for local markets too, so that we strengthen our industry, said Anurag Thakur.

TELCOM SECTOR AND AGR

Telecom Minister Ashwini Vaishnaw mentioned the Union cupboard rationalised the Adjusted gross income (AGR) definition by excluding non-telecom income of telcos from fee of statutory levies. AGR refers to revenues which are thought-about for fee of statutory dues.

Speaking concerning the concern of AGR, Ashwini Vaishnaw mentioned, “PM [Prime Minister Narendra] Modi took a bold decision over AGR (adjusted gross revenue) today. A decision has been taken to rationalise the definition of AGR. All non-telecom revenue will be taken out of the AGR.

“Non-telecom revenue will be removed from the AGR definition. Now there will be annual compounding…,” he mentioned.

Ashwini Vaishnaw additional mentioned, “In the telecom sector, nine structural reforms and five process reforms have been approved by the cabinet. These reforms will change the framework of the entire telecom sector. They will deepen and broaden the industry.”

The spectrum public sale shall be held in the final quarter of the monetary yr, Ashwini Vaishnaw mentioned.

Ashwini Vaishnaw additional mentioned that 100 per cent FDI (Foreign Direct Investment) in telecom by way of the automated route was accepted by the Cabinet.

Among the measures accepted had been a four-year moratorium on unpaid dues, AGR and spectrum dues, he mentioned. These measures are anticipated to ease the money circulate points being confronted by some gamers in the business.

“The Cabinet has approved a four-year moratorium on payment of statutory dues by telecoms. They have to pay interest on the moratorium period,” Ashwini Vaishnaw mentioned.

Besides different reforms, Ashwini Vaishnaw additionally introduced the digitisation of KYC.

“All KYC will be digitised and no form-paper work is required now. No more repeat KYCs to go from prepaid to postpaid or vice versa. An auction calendar will be created and 1953 Customs notifications will be amended,” he mentioned.

Core and radio access technology for 4G and RG [Radio Guide] will be made in India…It will be deployed in the coming months in India and there’s a vision to export it as well,” Ashwini Vaishnaw mentioned.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.