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Industry welcomes revised PLI scheme for IT hardware, a govt meet organised for May 20
The Union Cabinet has approved a budgetary outlay of Rs 17,000 crore for the IT hardware PLI 2.0, up from Rs 7,350 crore in the previous version of the scheme, for a period of six years. The revised scheme now outlays an incentive of 5% – compared with around 2% in the initial plan – for meeting incremental production and investment targets, along with optional additional incentive for localisation.
For global applicants, the government has a maximum cap incentive of Rs 4,500 crore over the duration of the scheme, while for hybrid companies that are a mix of domestic and global firms, the incentives have been capped at Rs 2,250 crore. Domestic companies will be eligible to get a maximum incentive of Rs 500 crore, the government said.
SOME SELECTED RESPONSES
“There is an expected investment of Rs 2,430 crore under the scheme. The additional incremental production is expected to be Rs 3.35 lakh crore. We have learnt a lot from our experience in mobile phones and in telecom products.The earlier mindset was import substitution. Now the mindset is export-led growth.”
Ashwini Vaishnaw, union minister for electronics and information technology
“The scheme will create additional incentives for companies to invest, set up their manufacturing base in India and also the original equipment manufacturers (OEMs) that incorporate Indian-designed IP into their systems and their products.”
Rajeev Chandrasekhar, minister of state for electronics and information technology.
An investment of Rs 250 crore that is required as part of the scheme is planned by us.”
Sunil Vachani, CMD, Dixon Technologies.
“We will be actively considering and evaluating their options to participate in this new phase of growth in electronics manufacturing.”
A Gururaj, managing director Optiemu
“The IT hardware industry, including global and domestic companies, catalysed by the revised scheme, is targeted to reach a production of $24 billion by FY26, with exports anticipated to be in the range of $12-17 billion in the same period.”
Pankaj Mohindroo, chairman, India Cellular and Electronics Association (ICEA).
“The scheme will further promote domestic production through establishment of manufacturing units and ancillary industries which in turn will also lead to increased employment opportunities.”
Peeyush Vaish, partner and TMT industry leader, Deloitte South Asia.
DoT has invited around 100 companies, both local and global, including those participating in the PLI scheme for telecom equipment manufacturing, for a meeting on May 20. The government is keen to understand what steps it can take to ensure that the PLI scheme takes off, not only for the established telecom gear manufacturers players and exporters but also promising small manufacturers and startups.
Also read, https://www.communicationstoday.co.in/cabinet-approves-revised-pli-scheme-for-it-hardware/
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