Ministry of Electronics and Information and Technology (MeitY) has approved 14 eligible applicants under the Scheme (PLI) for IT Hardware. A total of 19 companies filed applications for the PLI scheme in May. PLI Scheme for IT Hardware, extends an incentive of 4% to 2%/1% on net incremental sales (over base year of FY 2019-20) of goods under target segments that are manufactured in India to eligible companies, for a period of four years. This scheme for a period of 2020-21 till 2024-25 has been extended by one year, i.e. till 2025-26.
Four companies that have been selected under the category IT Hardware Companies include Dell, ICT (Wistron), Flextronics and Rising Stars Hi-Tech (Foxconn).
10 companies that have been select under the category of Domestic Companies include 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.
MeitY said that 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 INR 1.61 lakh crore that includes INR 84,746 crore for IT Hardware companies and INR 76,007 crore for Domestic Companies. Exports worth Rs. 60 thousand Crore is estimated in four years.
The scheme will bring additional investment in IT Hardware manufacturing to the tune of INR 2,517 crore. It also said that incentives worth Rs. 7,325 Crore will be provided over four years for manufacturing of these products in India. This will generate an additional direct employment opportunities of more than 36,000 in the 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%.
Regarding the approval under PLI scheme, Ravi Shankar Prasad, Union Minister for Electronics & IT, Communications, Law and Justice said:
PLI scheme has been a huge success in terms of the applications received from Global as well as Domestic manufacturing companies. Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination, and this resonates strongly with the Prime Minister’s clarion call of AtmaNirbhar Bharat – a self-reliant India.
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.