40 applicants eagerly await the approved IT PLI Scheme 2.0 list

The government is planning to release the list of companies that have qualified for the Rs 17,000-crore IT hardware production-linked incentive (PLI) scheme within the next two weeks.

“We have sought clarification from some companies on the proposals submitted by them,” the official said on condition of anonymity, adding that the list of approved applicants will be released once the clarification comes in.

The official further added that some of the proposals did not mention all the required details of investment plans and the start of manufacturing products under the scheme.

Nearly 40 companies had submitted their proposals under the second phase of the IT hardware PLI, which was approved in May with double the outlay of the first phase of the scheme. Of the 40 applications, there are 33 domestic companies and seven global companies.

The IT PLI Scheme 2.0 aims to promote local manufacturing of laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.

With a tenure of six years, the scheme 2.0 will provide an average incentive of 5% on net incremental sales of electronics manufactured in India, calculated over the base year. The incentive offered under the second phase is much higher than the 2% offered under the first phase of the PLI in 2021.

According to latest government estimates, incremental production is expected to be Rs 4.65 trillion including exports of Rs 28,288 crore under the second phase of the scheme. Based on the proposals received, the incremental investment is expected to be Rs 5,010 crore.

The scheme has been oversubscribed against the budgetary allocation of Rs 17,000 crore, and applicants have projected PLI amount to the tune of 22,890 crore, the government had said.

Of the 40 applicants, the major players are HP, Dell, Lenovo, Acer, Asus, HPE, and Thomson. Of these seven brands, while Dell and HP are participating directly, HPE, Lenovo, Acer, Asus, and Thomson are participating through contract manufacturing companies.

These companies will also receive support from Indian companies such as Padget (Dixon), VVDN, Netweb, Syrma, Opiemus, Sahasra, and Sojo (Lava). Financial Express