In a bid to make the auto components industry more competitive in the global realm, the Department of Heavy industry (DHI) has asked for Rs 1,000 crore in the next budget. This kitty is meant to encourage the upgrading of technology in auto component manufacturing plants.
Technology Upgradation in Indian Auto Sector
The funds would enable auto industry players to take out cheap loans and repay them, says a DHI official. In its pre-budget recommendation, the DHI has sought to acquire Rs 1,000 crore to be implemented under the Technology Up gradation Scheme.
This scheme plans to subsidize 5% on loans from the government, for upgrading technology. At the moment, only the textile industry has benefited from this scheme. According to the DHI official, funding is required to make the auto components, especially in the SME sector, more competitive.
The DHI has also proposed that the government halts imposing higher excise duty on diesel cars.
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