Government looks to expand list of domestic manufacturers under PLI scheme

In a decision that will give a major boost to electronics manufacturing by homegrown companies, the government is looking to expand the list of domestic manufacturers targeted for the ambitious production-linked incentive (PLI) scheme for mobile phones to seven against the five that is currently stipulated. This could be through the expansion of the present scheme, or by calling out another package to include the additional ones.

The Rs 41,000 crore scheme, which aims to generate additional production of nearly Rs 12 lakh crore over the next five years, will also have five international players that include four top contract manufacturers of American electronics giant Apple (Foxconn Hon Hai, Rising Star, Wistron and Pegatron), apart from Korean major Samsung.

From the domestic side, a total of seven companies had applied for the incentive scheme even though the original plan from the government is for five players. These seven entities are two companies each from Lava group (Lava and Sojo) and Dixon Technologies (Dixon and Padget Electronics), apart from single applications from Bhagwati (Micromax), Optiemus Infra and United Tele (of Karbonn group). The thinking within the government is that all the seven domestic companies that have applied for the incentive should be called in. “If the companies are ready to invest and comply with the guidelines for turnover and investments, they should be given a chance,” a source told TOI.

The Rs 41,000 crore scheme, which aims to generate additional production of nearly Rs 12 lakh crore over the next five years, will also have five international players that include four top contract manufacturers of American electronics giant Apple (Foxconn Hon Hai, Rising Star, Wistron and Pegatron), apart from Korean major Samsung.

The last date for filing of the application was July 31, and the applications are now being verified by an empowered committee, following which it goes to a high-powered multi-ministry Empowered Committee (EC).

Another source said that the changes to the scheme structure could be made at this stage for widening the scope allocated for the domestic makers. The government is hoping to attract fresh investments to the tune of Rs 11,000 crore through the scheme which is likely to generate 3 lakh direct jobs and 9 lakh indirect ones. i>

Another source said that the changes to the scheme structure could be made at this stage for widening the scope allocated for the domestic makers. The government is hoping to attract fresh investments to the tune of Rs 11,000 crore through the scheme which is likely to generate 3 lakh direct jobs and 9 lakh indirect ones. Gadgets Now