Centre approves 14 applicants under PLI scheme for IT hardware products

Ministry of Electronics and IT (MeitY) on Thursday approved 14 eligible applicants under Production Linked Incentive (PLI) Scheme for IT hardware products.

The PLI Scheme for IT Hardware extends an incentive of 4% to 2% on net incremental sales over base years of FY20.

The target segments under this PLI scheme include laptops, tablets, all-in-one personal computers (PCs) and Servers. The scheme proposes production-linked incentives to boost domestic manufacturing and attract large investments in the value chain of these IT Hardware products, the ministry said in a statement.

The applicants include four companies selected globally, which include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).

Under the category of Domestic Companies, 10 companies namely Lava International Limited, Dixon Technologies (India) Limited, Infopower Technologies (JV of Sahasra and MiTAC), Bhagwati (Micromax) Neolync, Optiemus, Netweb, Smile Electronics, VVDN and Panache Digilife have been approved.

While giving approval to eligible applicants under the PLI Scheme, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said that PLI scheme has been huge success in terms of the applications received from Global as well as Domestic manufacturing companies.

Prasad further said, “We are optimistic and looking forward to building a strong ecosystem across the value chain and integrating with the global value chains, thereby strengthening electronics manufacturing ecosystem in the country”.

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 INR 76,007 crore. The scheme will bring additional investment in IT Hardware manufacturing to the tune of ₹2,517 crore.

The scheme will generate additional direct employment opportunities of more than 36,000 in next 4 years along with creation of additional indirect employment of nearly 3 times the direct employment. Domestic Value Addition is expected to grow from the current 10-15% to 25-30%, the government further stated.

With the demand for electronics in India expected to grow manifold by 2025, Prasad expressed confidence that PLI scheme and other initiatives to promote electronics manufacturing will help in making India a competitive destination for electronics manufacturing and give boost to AtmaNirbhar Bharat. Creation of domestic champion companies in electronics manufacturing under the Scheme will boost vocal for local while aiming for global scale.

“PLI Schemes will help in making India a globally competitive destination for electronics manufacturing and create domestic champions to further our mission of achieving an AtmaNirbhar Bharat,” the statement added. Livemint