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The Central government on Thursday approved 14 eligible applicants under the Production Linked Incentive (PLI) scheme for IT hardware products which includes laptops, tablets, all-in-one personal computers (PCs) and servers electronics manufacturing.
Incentives worth ₹7,325 crore will be provided over four years for manufacturing these products in India to the selected applicants.
Four companies have been selected under the category of IT hardware companies which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).
Also Read: ‘One-year extension of PLI scheme will aid mobile makers’
Under the category of domestic companies, proposals of ten companies which include Lava International, Dixon Technologies (India), Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved, the statement added.
“Over the next 4 years, the approved companies under the PLI Scheme for IT hardware are expected to lead to a total production of more than ₹1.61 lakh crore. Out of the total production, the approved companies under IT hardware companies category have proposed a production of ₹84,746 crore. The approved companies under domestic companies category have proposed a production of ₹76,007 crore. The scheme will bring additional investment in IT hardware manufacturing to the tune of ₹2,517 crore,” an official statement from the Ministry of Electronics and Information Technology stated.
Scheme’s incentive
The government had notified the PLI Scheme for IT hardware in March. The scheme will extend an incentive of 4 per cent to 2 per cent/1 per cent on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years till FY2024-25.
Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said that the PLI scheme has been a huge success in terms of the applications received from global as well as domestic manufacturing companies. “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country,” he added.
The scheme will generate additional direct employment opportunities for more than 36,000 people in next 4 years and domestic value addition is expected to grow from the current 10-15 per cent to 25-30 per cent, the official statement added.
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