Info-tech

Government approves 16 mobile companies under PLI Scheme

Our Bureau. New Delhi | Updated on October 06, 2020 Published on October 06, 2020

The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing was notified on April 1 this year

Ministry of Electronics and Information and Technology (MeitY) on Tuesday said it had approved 16 eligible applicants under the Production Linked Incentive (PLI) Scheme for large scale electronics manufacturing notified on April 1.

The Scheme extends an incentive of four-six per cent on incremental sales (over the base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (The fiscal year 2019-20).

"PLI scheme has been a huge success in terms of the applications received from global as well as domestic mobile phone manufacturing companies and electronic components manufacturers. The industry has reposed its faith in India's stellar progress as a world-class manufacturing destination, and this resonates strongly with Prime Minister's clarion call of AtmaNirbhar Bharat - a self-reliant India," Ravi Shankar Prasad, Minister for Electronics & IT, Communications, Law and Justice said.

He said the government is optimistic and looking forward to building a robust ecosystem across the value chain and integrating with the global value chains, thereby strengthening the electronics manufacturing ecosystem in the country.

The international mobile phone manufacturing companies that are approved under Mobile Phone (invoice value Rs.15,000 and above) segment are Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron.

Out of these, three companies -- Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Apple (37 per cent) and Samsung (22 per cent) together account for nearly 60 per cent of global sales revenue of mobile phones and this Scheme is expected to increase their manufacturing base manifold in the country, a government release said.

Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are approved by MeitY. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production.

Six companies are approved under the Specified Electronic Components Segment, which includes AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.

Over the next five years, the approved companies under the PLI Scheme are expected to lead to the total production of more than Rs 10,50,000 crore and out of the total output, the approved companies under Mobile Phone (invoice value Rs 15,000 and above) segment have proposed production of over Rs 9,00,000 crore.

The approved companies under Mobile Phone (Domestic Companies) segment have proposed production of about Rs 1,25,000 crore and those under Specified Electronic Components segment have proposed production of over Rs.15,000 crore.

The companies approved under the Scheme are expected to promote exports significantly. Out of the total production of Rs 10,50,000 crore in the next five years, around 60 per cent will be contributed by exports of the order of Rs 6,50,000 crore.

The companies approved under the Scheme will bring additional investment in electronics manufacturing to the tune of Rs.11,000 crore.

The companies approved under the Scheme will generate more than two-lakh direct employment opportunities in the next five years along with the creation of additional indirect employment of nearly three times the direct employment.

Domestic Value Addition is expected to grow from the current 15-20 per cent to 35-40 per cent in case of Mobile Phones and 45-50 per cent for electronic components.

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Published on October 06, 2020
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