PLI scheme doesn't compensate for obstacles in uncompetitive environment: Maruti chairman

It cannot compensate for the obstacles of being uncompetitive, Bhargava said at an interactive session with The Bengal Chamber.The government had announced an outlay of Rs 1.97 lakh crore for the PLI scheme for 13 sectors including automobile in the 2021-22 Union budget.

The Production Linked Investment (PLI) scheme announced by the government for ramping up large-scale manufacturing capacity does not compensate for obstacles in an uncompetitive business environment, Maruti Suzuki chairman R C Bhargava said on Friday.

He advocated for policies that are directed at making manufacturing competitive by bringing down costs to make it affordable for domestic and international markets.

''The PLI scheme will help certain sectors and products. It cannot compensate for the obstacles of being uncompetitive,'' Bhargava said at an interactive session with The Bengal Chamber.

The government had announced an outlay of Rs 1.97 lakh crore for the PLI scheme for 13 sectors including automobile in the 2021-22 Union budget. The scheme aims at boosting domestic manufacturing under the governments Atmanirbhar Bharat initiative.

To a question, Bhargava said that the company was not looking for new manufacturing plants as the industry CAGR for the last few years was less than two per cent.

''We only have to look for a site to relocate from Gurgaon. Have some additional land in Gujarat,'' the chairman of the country's largest automaker said without elaborating.

To attract investment, Bhargava said, there has to be political and administrative will, and measures to ensure costs are competitive, he said in the context of revitalisation of industry in West Bengal.

Replying to a question, he said that conflict in the relationship between a state and the Centre does not impact investments.

The West Bengal government is at loggerheads with the Centre over various issues.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)