Government to introduce PLI to attract train manufacturing firms

In a notable development, government plans to introduce a production-linked incentive (PLI) scheme for train component makers. This is being done to attract foreign manufacturing firms and reduce dependence on imports. The details of the PLI scheme will be worked out with the help of a consultancy firm, which will be selected through a bidding process in August 2023. PLI programme will incentivise setting up of new manufacturing units, or expanding existing ones to supply coach and engine parts that are otherwise imported. This is in line with the government’s plan of having only two types of passenger coaches Linke Hofmann Busch (LHB) and Vande Bharat–down from 28 at present.