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Samsung to get ₹600 cr as phone manufacturing PLI for year one

The central government may pay up to ₹600 crore to South Korea’s Samsung Electronics Co Ltd for the first year under the Production-Linked Incentive (PLI) scheme for mobile phone manufacturing. This will be the biggest payment so far under this scheme. According to a report, officials said that the government can release the incentive amount by the end of this month. It has been said that the decision to issue it was taken after due deliberations at the top level of the government.

“The internal committee of the Ministry of Electronics and Information Technology has agreed to give the pending incentive from the first year of the PLI scheme,” say officials, noting that the amount could be around ₹500-600 crore. ₹900 crore incentive claim.

Samsung claimed an incentive of about ₹900 crore for generating a revenue of about ₹15,000 crore from smartphone sales in FY11, the first year of mobile phone manufacturing that began in August 2020. It was the only company that achieved the set targets to claim the incentive, while other companies that struggled after the pandemic could not do so. The pre-conditions of the scheme included a minimum investment of ₹250 crore in the first financial year, followed by an investment of the same amount in each of the next three financial years.

The terms are different for local handset makers, who will have to invest ₹50 crore in each of the first four financial years and an incremental ₹500 crore for each of the five financial years to avail the incentive for the same incentive. Sales have to be achieved. CNBCTV18

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