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Mahindra Group chairman Anand Mahindra and Ola Cabs founder and CEO Bhavish Aggarwal have hailed the Centre's decision for clearing the PLI scheme for the auto sector.

Anand Mahindra called the PLI scheme for the auto sector a 'transformational policy change'. On the other hand, Aggarwal called it a 'visionary step'.

Mahindra in a tweet wrote, "Some may think that existing OEMs like us will be disappointed that this scheme focuses on renewable energy vehicles. Frankly, we believe this is a transformational policy change".

He said that the auto PLI scheme is a signal to the world that India could become a force in the future of automobiles.

"...signals to the world that India intends to be a force in the future of Automobiles," the business tycoon added.

 

While Aggarwal, striking an optimistic tone on the scheme, said, "India is ready to reject petrol and fully commit to electric!". He also shared a song of legendary American singer-songwriter Bob Dylan, " The Times They Are A-Changin" song to eliminate confusion.

Yesterday, the Central Government approved a 25,938-crore PLI scheme for the auto sector focused on promoting the manufacturing of advanced automotive technology products like electric and hydrogen-fuel vehicles.

Last year, the government had announced a scheme for the automobile and auto components sector with an outlay of 57,043 crore, earmarked for five years.

Union Minister Anurag Thakur said that the scheme for the automobile industry will lead to a fresh investment of over 42,500 crore, incremental production of over 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs.

Several industry experts have also welcomed the government's move. Saurabh Kanchan, Partner, Deloitte India said, "This would aid in their localization and wider adoption, thereby enhancing safety and consumer experience".

Mahua Acharya, Managing Director and CEO of Convergence Energy Services Ltd, said the scheme will give a big boost to the electric mobility ecosystem and has the potential to attract large-scale investments over the next few years.

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