Govt could soon make major changes to the PLI scheme on IT hardware. Ministry of Electronics & IT has made a proposal to hike the financial outlay by 2.5 times from ₹7,350 cr to ₹19,000 crore.
The PLI for IT hardware 2.0 scheme has so far seen a muted response. The draft proposal has been circulated within the industry for a feedback, and it is yet to go to the cabinet. According to the draft, the restructured scheme will now offer incentives of 4-5.75% over five years, against 1-4% over a tenure of four years at present.
Aruna Sharma former Secretary, Ministry of Electronics and IT said, “The average incentive given to applicants under the (current) electronics hardware PLI is very low. Also, there is no duty on the import of electronic hardware. So, the players who have applied have to compete on costs and quality on a global scale.”